Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

5 Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
5 Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements (LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: nts eBook 13 7 Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 1 Hint $288,000 $198,000 Print References During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 per unit Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost b. Prepare an income statement for the year. 2. Assume that the company uses variable costing a. Compute the unit product cost. b. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2A Reg 28 Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost Heq 1 Req 18> 13 7 1 Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $288,000 $198,000 Book Hint During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 pe Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. erences Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 2B Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Saved ided Examples operations: $ 13 7 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 1 1 $288,000 $198.000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the yean 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 2B Compute the unit product cost. Assume that the company uses variable costing Unit product cost statement for the year. 2. Assume that the company uses variable costing a. Compute the unit product cost. b. Prepare an income statement for the year Sook Complete this question by entering your answers in the tabs below. Tint Req IA Reg 1B Req 2A Reg 2B rint Prepare an income statement for the year. Assume that the company uses variable costing ences Lynch Company Variable Costing Income Statement 0 0 0 0 13 7 1 Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $288,000 $198,000 Book Hint During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 pe Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. erences Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 2B Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Saved ided Examples operations: $ 13 7 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 1 1 $288,000 $198.000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's product is $48 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the yean 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 2B Compute the unit product cost. Assume that the company uses variable costing Unit product cost statement for the year. 2. Assume that the company uses variable costing a. Compute the unit product cost. b. Prepare an income statement for the year Sook Complete this question by entering your answers in the tabs below. Tint Req IA Reg 1B Req 2A Reg 2B rint Prepare an income statement for the year. Assume that the company uses variable costing ences Lynch Company Variable Costing Income Statement 0 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students explore these related Accounting questions