High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $76 Selling and administrative expenses: Variable per unit $4 Fixed per month $ 568,000 Manufacturing costs: Direct materials cost per unit $15 Direct labor cost per unit $8 Variable manufacturing overhead cost per unit $1 Fixed manufacturing overhead cost per month $ 782,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing.
Income statement | ||||
sales (41000*76) | 3116000 | |||
production cost (41*41000) | 1681000 | |||
Gross profit | 1435000 | |||
less: selling & adm exp | ||||
variable (4*41000) | 164000 | |||
Fixed | 568000 | 732000 | ||
net operating income | 703000 | |||
Unit of production cost | ||||
direct material | 15 | |||
direct labor | 8 | |||
variable manufacturing overhead | 1 | |||
fixed manufacturing overhead (782000/46000) | 17 | |||
cost per unit | 41 |
High Country, Inc., produces and sells many recreational products. The company has just opened a new...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $ 76 Selling and administrative expenses: Variable per unit $ 4 Fixed (per month) $ 560,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational
products. The company has just opened a new plant to produce a
folding camp cot that will be marketed throughout the United
States. The following cost and revenue data relate to May, the
first month of the plant’s operation:
46.000 41,000 $85 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per month Manufacturing costs: Direct materials cost per unit Direct labor cost...
High Country, Inc., produces and sells many recreational
products. The company has just opened a new plant to produce a
folding camp cot that will be marketed throughout the United
States. The following cost and revenue data relate to May, the
first month of the plant’s operation:
Management is anxious to assess the profitability of the new
camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b....
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 42,000 Units sold 37,000 Selling price per unit $ 83 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 567,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 47,000 Units sold 42,000 Selling price per unit $ 75 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 565,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 39,000 Units sold 34,000 Selling price per unit $ 81 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 564,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 35,000 Units sold 30,000 Selling price per unit $ 75 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 559,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 47,000 Units sold 42,000 Selling price per unit $ 85 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 555,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 49,000 Units sold 44,000 Selling price per unit $ 80 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 563,000 Manufacturing costs: Direct materials...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 10,000 Units sold 8,000 Selling price per unit $ 75 Selling and administrative expenses: Variable per unit $ 6 Fixed (per month) $ 200,000 Manufacturing costs: Direct materials...