Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $54 per unit.
Required:
1. Assume the company uses variable costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
2. Assume the company uses absorption costing:
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2.
3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.
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Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 22 Direct labor $ 18 Variable manufacturing overhead $
2 Variable selling and administrative $ 1 Fixed costs per year:
Fixed manufacturing overhead $ 400,000 Fixed selling and
administrative expenses $ 90,000 During its first year of
operations, Walsh produced 50,000 units and sold 40,000 units.
During its second year of...
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
21
Direct labor
$
16
Variable manufacturing overhead
$
3
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
240,000
Fixed selling and administrative expenses
$
100,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
7 Walsh Company manufactures and sells one product. The following information pertains to each of the...
7
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: ve Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $320,000 Fixed selling and administrative expenses $ 60.000 SER During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 27 13 4 3 $320,000 $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations,...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unitt Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $320,000 $ 60,000 During its first year of operations, Walsh produced 50.000 units and sold 40.000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units....
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ 21 14 5 4 $240,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials 28 Direct labor 15 Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses 6 5 $320,000 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Saved Walsh Company manufactures and sells one product. The following information pertains to each of the...
Saved Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $ 240,000 $ 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40.000 units. During its second year of operations, it produced 40,000 units and sold...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 25 18 5 4 $320,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations,...
Bracey Company manufactures and sells one product. The following information pertains to the company’s first year...
Bracey Company manufactures and sells one product. The following
information pertains to the company’s first year of operations:
Variable cost per unit:
Direct materials
$
37
Fixed costs per year:
Direct labor
$
565,500
Fixed manufacturing overhead
$
487,200
Fixed selling and administrative expenses
$
84,000
The company does not incur any variable manufacturing overhead
costs or variable selling and administrative expenses. During its
first year of operations, Bracey produced 29,000 units and sold
26,300 units. The selling price of...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations: Variable costs per unit: Manufacturing: Direct
materials $ 22 Direct labor $ 18 Variable manufacturing overhead $
2 Variable selling and administrative $ 1 Fixed costs per year:
Fixed manufacturing overhead $ 400,000 Fixed selling and
administrative expenses $ 90,000 During its first year of
operations, Walsh produced 50,000 units and sold 40,000 units.
During its second year of...
Walsh Company manufactures and sells one product. The following
information pertains to each of the company’s first two years of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
21
Direct labor
$
16
Variable manufacturing overhead
$
3
Variable selling and administrative
$
2
Fixed costs per year:
Fixed manufacturing overhead
$
240,000
Fixed selling and administrative expenses
$
100,000
During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of...
7
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: ve Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $320,000 Fixed selling and administrative expenses $ 60.000 SER During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 27 13 4 3 $320,000 $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations,...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unitt Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $320,000 $ 60,000 During its first year of operations, Walsh produced 50.000 units and sold 40.000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units....
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ 21 14 5 4 $240,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials 28 Direct labor 15 Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses 6 5 $320,000 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and...
Saved Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses $ 240,000 $ 60,000 During its first year of operations, Walsh produced 50,000 units and sold 40.000 units. During its second year of operations, it produced 40,000 units and sold...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 25 18 5 4 $320,000 $ 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations,...
Bracey Company manufactures and sells one product. The following
information pertains to the company’s first year of operations:
Variable cost per unit:
Direct materials
$
37
Fixed costs per year:
Direct labor
$
565,500
Fixed manufacturing overhead
$
487,200
Fixed selling and administrative expenses
$
84,000
The company does not incur any variable manufacturing overhead
costs or variable selling and administrative expenses. During its
first year of operations, Bracey produced 29,000 units and sold
26,300 units. The selling price of...
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