Envelope Company had the following information during the previous year for one of its product lines: Sales
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Question:
Envelope Company had the following information during the previous year for one of its product lines:
- Sales price per unit: $450
- Units in beginning inventory: 0
- Units started during the year: 35,000
- Units sold: 28,000
Variable costs per unit:
- Direct materials: $70
- Direct labor: $180
- Variable overhead costs: $50
Fixed costs:
- Fixed overhead per unit: $30
- General and administrative: $1,000,000
To Do
- Calculate the ending inventory value and prepare an income statement using absorption costing.
- Calculate the ending inventory value and prepare an income statement using variable costing.
Question 2
The following information is for the previous year for Star Company. Based on this information, prepare a segmented income statement.
Product A | Product B | Common | |
Sales | 2,000,000 | 3,500,000 | |
Cost of Goods Sold | 1,000,000 | 1,800,000 | |
Direct Fixed Overhead | 100,000 | 100,000 | |
Direct General & Administrative | 20,000 | 50,000 | |
Common Fixed Overhead | 300,000 | ||
Common G & A | 50,000 |
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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