Bridgeport Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below:

Beginning inventory		0	units
Units produced		11,300
Units sold		9,400
Manufacturing costs
Fixed overhead		$135,600
Variable overhead		$7	per unit
Direct labour		$12	per unit
Direct material		$26	per unit
Selling and administrative costs
Fixed		$194,100
Variable		$4	per unit sold

The portable cooking unit sells for $112. Management is interested in the opening months results and has asked for an income statement. Assuming the company uses absorption costing:

(a)

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Your answer is correct.

Calculate the manufacturing cost per unit.

Manufacturing cost

$enter the manufacturing cost per unit in dollars

per unit

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(b)

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Prepare an absorption-costing income statement for the first month of operation.

BridgeportProducts Income StatementAbsorption Costing For the first month of operations
select an income statement item Contribution marginGross marginVariable costsCosts of goods manufacturedFixed costsOperating incomeGoods available for saleSalesEnding inventoryCost of goods soldSelling and administrative expensesBeginning inventoryVolume variance				$enter a dollar amount
select an opening section name Beginning inventorySalesGross marginVariable costsCost of goods soldGoods available for saleCosts of goods manufacturedOperating incomeSelling and administrative expensesContribution marginVolume varianceFixed costsEnding inventory:
select an income statement item Contribution marginOperating incomeGross marginBeginning inventoryCost of goods soldEnding inventoryCosts of goods manufacturedFixed costsSalesVariable costsSelling and administrative expensesVolume varianceGoods available for sale		$enter a dollar amount
select between addition and deduction AddLess: select an income statement item Volume varianceEnding inventoryGoods available for saleGross marginBeginning inventoryOperating incomeSalesFixed costsVariable costsContribution marginCosts of goods manufacturedSelling and administrative expensesCost of goods sold		enter a dollar amount
select a closing subsection name Ending inventoryCost of goods soldBeginning inventorySelling and administrative expensesOperating incomeVariable costsGross marginSalesCosts of goods manufacturedGoods available for saleContribution marginFixed costsVolume variance		enter a total amount for this subsection
select between addition and deduction AddLess: select an income statement item Selling and administrative expensesSalesContribution marginCost of goods soldGoods available for saleCosts of goods manufacturedOperating incomeBeginning inventoryEnding inventoryVolume varianceGross marginVariable costsFixed costs		enter a dollar amount		enter a subtotal of the two previous amounts
select a summarizing line for the first part Fixed costsSelling and administrative expensesContribution marginCosts of goods manufacturedVolume varianceBeginning inventorySalesEnding inventoryVariable costsGoods available for saleGross marginCost of goods soldOperating income				enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item Gross marginVariable costsCosts of goods manufacturedSalesContribution marginCost of goods soldVolume varianceOperating incomeEnding inventoryFixed costsGoods available for saleBeginning inventorySelling and administrative expenses				enter a dollar amount
select a closing name for this statement Fixed costsCost of goods soldVariable costsCosts of goods manufacturedSelling and administrative expensesContribution marginEnding inventoryGross marginVolume varianceGoods available for saleSalesOperating incomeBeginning inventory				$enter a total amount for this statement

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