Question
DO NOT COPY FROM CHEGG. I HAVE ALREADY SEEN THE ANSWERS THEY ARE NOT WELL EXPLAINED. PLEASE ONLY ATTEMPT IF YOU ARE SURE ABOUT THE
DO NOT COPY FROM CHEGG. I HAVE ALREADY SEEN THE ANSWERS THEY ARE NOT WELL EXPLAINED. PLEASE ONLY ATTEMPT IF YOU ARE SURE ABOUT THE ANSWER AND EXPLAIN EACH STEP OF THE ANSWER.
Highlands Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on normal production of 50,000 units per year:
| Direct materials | $10 |
| Direct labor | 8 |
| Variable factory overhead | 6 |
| $24 | |
| Fixed factory overhead | 6 |
| $30 |
Operating statistics for the months of July and August are as follows:
| July | August | |
| Units produced | 6,000 | 4,000 |
| Units sold | 4,000 | 6,000 |
| Selling and administrative expenses | $25,000 | $25,000 |
The selling price is $40 per unit. There were no inventories on July 1, and there is no work in process at August 31.
Complete the comparative income statements on the next page for July and August for Highlands under:
1. absorption costing
2. variable costing
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615
