Question
(25 Points) Show all work and label all numbers. Etters Manufacturing Company has provided the following financial data for its most recent month. Selling Price
- (25 Points) Show all work and label all numbers. Etters Manufacturing Company has provided the following financial data for its most recent month.
| Selling Price | $18 |
| Units produced | 10,000 |
| Units sold | 9,500 |
| Variable costs per unit: |
|
| Direct materials | $6 |
| Direct labor | $4 |
| Manufacturing overhead | $3 |
| Selling and administrative costs | $1 |
| Fixed costs: |
|
| Manufacturing overhead | $12,000 |
| Selling and administrative costs | $8,000 |
Required:
- Prepare an operating income statement using variable costing.
- Prepare an operating income statement using absorption costing.
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
