Question
ACC 202: Managerial Accounting (4226_E0Z1) chapter 19 3.Rey Companys only product sells for $227 per unit. Data for its first year of operations follow. Direct
ACC 202: Managerial Accounting (4226_E0Z1)
chapter 19
3.Rey Companys only product sells for $227 per unit. Data for its first year of operations follow.
Direct materials | $ 31 | per unit |
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Direct labor | $ 39 | per unit |
Variable overhead | $ 13 | per unit |
Fixed overhead | $ 420,000 | per year |
Variable selling and administrative expenses | $ 29 | per unit |
Fixed selling and administrative expenses | $ 222,000 | per year |
Units produced and sold | 28,000 | units |
1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.
Prepare an income statement for the year using variable costing.
Prepare an income statement for the year using absorption costing.
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4. Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing.
Sales price | $ 57.70 | per unit |
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Direct materials | $ 10.70 | per unit |
Direct labor | $ 8.20 | per unit |
Variable overhead | $ 12.70 | per unit |
Fixed overhead | $ 1,316,700 | per year |
1. Compute gross profit assuming (a) 77,000 units are produced and 77,000 units are sold and (b) 114,000 units are produced and 77,000 units are sold. 2. By how much would the companys gross profit increase or decrease from producing 37,000 more units than it sells?
Compute gross profit assuming (a) 77,000 units are produced and 77,000 units are sold and (b) 114,000 units are produced and 77,000 units are sold.
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By how much would the companys gross profit increase or decrease from producing 37,000 more units than it sells?
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