Question
Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,400 dolls, produced 225,000 dolls, and ended the year with 8,400
Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,400 dolls, produced 225,000 dolls, and ended the year with 8,400 dolls. Each doll was sold for $20. The actual unit cost for Teardrops is given below: Direct material $ 2.40 Direct labour 0.80 variable overhead 2.90 Fixed overhead 7.40 Total unit cost $ 13.50 The only selling expenses were a commission of $2 per unit sold and advertising amounting to $354,000. Administrative expenses, all fixed, equalled $274,000. There were no beginning and ending work-in-process inventories. Required: 1. Prepare an income statement.
what is amount of sales?
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