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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,750 rackets and sold 5,280. Each racket was sold at a price of $90. Fixed overhead costs are $87,750 per year, and fixed selling and administrative costs are $66,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2 Prepare an income statement under variable costing. ACES INCORPORATED Income Statement (Variable Costing) Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,750 rackets and sold 5,280. Each racket was sold at a price of $90. Fixed overhead costs are $87,750 per year, and fixed selling and administrative costs are $66,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2 Compute the cost of ending finished goods inventory reported on the balance sheet using variable costing. $ 8 Finished goods Inventory under variable conting Direct labor Direct materials Variable overhead 12 5 0 25 $ Product cost per unit Units in ending FG Inventory Finished goods inventory reported on balance sheet Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,750 rackets and sold 5,280. Each racket was sold at a price of $90. Fixed overhead costs are $87,750 per year, and fixed selling and administrative costs are $66,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2 Prepare an income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) 0 $ 0 Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,750 rackets and sold 5,280. Each racket was sold at a price of $90. Fixed overhead costs are $87,750 per year, and fixed selling and administrative costs are $66,800 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 5 2 Compute the cost of ending finished goods inventory reported on the balance sheet using absorption costing. $ 8 Finished goods Inventory under absorption costing Direct labor Direct materials Fixed overhead Variable overhead 12 5 $ 25 Product cost per unit Units in ending FG inventory Finished goods inventory reported on balance sheet A manufacturer reports the following information: Direct materials $ 42.00 per unit Direct labor $ 11.20 per unit Variable overhead $ 5.20 per unit Fixed overhead $ 1.20 per unit Target markup 40% Compute the (a) total product cost per unit under absorption costing and (b) target selling price per unit under absorption costing. Complete this question by entering your answers in the tabs below. Required A Required B Compute the total product cost per unit under absorption costing, (Round your answers to 2 decimal places.) Per unit Total product cost using absorption costing $ 0.00 Required A Required B A manufacturer reports the following information: Direct materials $ 42.00 per unit Direct labor $ 11.20 per unit Variable overhead $ 5.20 per unit Fixed overhead $ 1.20 per unit Target markup 40% Compute the (a) total product cost per unit under absorption costing and (b) target selling price per unit under absorption costing. Complete this question by entering your answers in the tabs below. Required A Required B Compute the target selling price per unit under absorption costing. (Round your answers to 2 decimal places.) Por unit Target selling price per unit $ 0.00
