Question
Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost
Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first month of operations (June 2020) are as follows: Manufacturing costs Fixed overhead $231,080 Variable overhead $3.00 per tent Direct labour $15.70 per tent Direct material $40.40 per tent Beginning inventory 0 tents Tents produced 10,900 Tents sold 9,100 Selling and administrative costs Fixed $385,800 Variable $5.30 per tent sold The tent sells for $152. Management is interested in the opening months results and has asked for an income statement.
Assuming the company uses throughput costing: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 25.75.)
Manufacturing cost | $ | per unit |
2. Prepare a throughput-costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)
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