Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cap Incorporated manufactures ball point pens that sell at wholesale for $ 0 . 8 0 per unit. Budgeted production in both 2 0 2

Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 16,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:
20212022
Units sold 14,50012,000
Units produced 16,00013,000
Costs:
Variable factory overhead per unit $ 0.15 $ 0.15
Fixed factory overhead $ 3,200 $ 2,600
Variable marketing per unit $ 0.30 $ 0.30
Fixed Selling and Administrative $ 320 $ 320
Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions