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. Assignments: ACCT - 2 2 1 0 - D Question 4 - Chapter 5 Home E . canvas ( 1 iclicar or H ha
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Northwood Company manufactures a basketball selling for $ per unit in a small plant heavily relying on direct labor workers. Thus, variable expenses are high, totaling $ per ball, of which is direct labor cost.
Last year, the company sold balls, with the following results:
Book
Sales balls
Hint
Variable expenses
Fixed expenses
Net operating income
table$
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:During the year, the company produced units and sold units. The selling price of the company's product is $ per unit.Required:
Assume the company uses absorption costing:
a Compute the unit product cost.
b Prepare an income statement for the year.
Assume the company uses variable costing:
a Compute the unit product cost.
b Prepare an income statement for the year.
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