Solution-Compute unit product cost and prepare an income

Compute unit product cost and prepare an income statement

Assignment Help Accounting Basics

Reference no: EM132069516

Question - A Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

Variable cost per year:

Direct Materials $18

Direct labor $7

Variable manufacturing overhead $2

Variable selling and administrative $5

Fixed cost per year:

Fixed manufacturing overhead $160,000

Fixed selling and administrative $110,000

During the year, the company produced 20,000 Units and sold 16,000 units. The selling price of the company's product is $50 per unit.

Assume Ingle Company uses the absorption costing method. Compute the unit product cost and prepare an income statement for the year.

Assume Ingle Company uses the variable costing method. Compute the unit product cost and prepare a contribution format income statement for the year.

Explain (specifically) why the two methods on the previous page yield different net incomes. Be sure to use numbers relating to this problem.

Reference no: EM132069516

Questions Cloud

Methodical problem solving strategies in project management : This assignment will assess the following competency: Develop methodical problem solving strategies in project management.

Improve organisational procedures for record keeping : What recommendations would you give to improve organisational procedures for record keeping?

Describe organizational barrier and financial barrier : Identify and briefly describe one organizational barrier and one financial barrier relating to the suicide- and homicide-prone. Create two recommendations.

What improvements or changes need to be made : Assume you are Kendra. What would you want to say at the retrospective? How would you say it? What improvements or changes need to be made?

Compute unit product cost and prepare an income statement : Assume Ingle Company uses the absorption costing method. Compute the unit product cost and prepare an income statement for the year

Case study-was google wrong : Google has fired an employee who wrote a controversial memo opposed to diversity programmes and hiring practices.

Calculate the average days in inventory : The average inventory for the year amounted to $2,500,000. The average days in inventory during the year was approximately

What side would the cane go on : The project is to write a one page paper on patient teaching how to use a cane. The difference between 2 gait, 3 gait, and 4 gait canes.

Calculate the inventory turnover ratio for the year : The average inventory for the year amounted to $2,500,000. The inventory turnover ratio for the year is

User Account

All Pages

Compute unit product cost and prepare an income statement

Reference no: EM132069516

Reference no: EM132069516

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT