Question
Dilithium Batteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications. During the
Dilithium Batteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications. During the coming year, it expects to sell 60,000 units for $34 per unit. Nyota Uthura is the division manager. She is considering producing either 60,000 or 90,000 units during the period. Other information is presented in the schedule. - Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.
Dilithium Batteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications. During the coming year, it expects to sell 60,000 units for $34 per unit. Nyota Uthura is the division manager. She is considering producing either 60,000 or 90,000 units during the period. Other information is presented in the schedule. 0 60,000 $34 $14 $540,000 Division Information for 2020 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing costs per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit: Based on 60,000 units Based on 90,000 units Manufacturing cost per unit: Based on 60,000 units Based on 90,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) $9 per unit ($540,000 = 60,000) $6 per unit ($540,000 = 90,000) per unit ($14 variable + $9 fixed) per unit ($14 variable + $6 fixed) $23 $20 $3 $50,000 Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced. DILITHIUM BATTERIES DIVISION Income Statement For the Year Ended December 31, 2020 Absorption Costing 60,000 Produced 90,000 Produced Sales 2040000 $ 2040000 Cost of Goods Sold 1380000 i 1200000 i Gross Profit 660000 840000 Variable Selling and Administrative Expenses 180000 i 180000 i Fixed Selling and Administrative Expenses 50000 i 50000 i Net Income/(Loss) $ 430000 $ 610000 Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced. DILITHIUM BATTERIES DIVISION Income Statement For the Year Ended December 31, 2020 V Variable Costing 60,000 Produced 90,000 Produced Sales $ $ V $ $
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