Exercise 20-17

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.

Variable Costs per Unit Direct materials $7.80 Direct labor $3.59 Variable manufacturing overhead $6.03 Variable selling and administrative expenses $4.06 Fixed Costs per Year Fixed manufacturing overhead $231,400 Fixed selling and administrative expenses $218,504

Siren Company sells the fishing lures for $26.00. During 2017, the company sold 79,000 lures and produced 89,000 lures.

Assuming the company uses variable costing, calculate Sirens manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit $

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Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

SIREN COMPANY Income Statement December 31, 2017 For the Quarter Ended December 31, 2017 For the Year Ended December 31, 2017 Variable Costing Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $ Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $ Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $

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Assuming the company uses absorption costing, calculate Sirens manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit $

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Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

SIREN COMPANY Income Statement December 31, 2017 For the Quarter Ended December 31, 2017 For the Year Ended December 31, 2017 Absorption Costing Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $ Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $ Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses Administrative Expenses Contribution Margin Cost of Goods Sold Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses Gross Profit Net Income/(Loss) Sales Total Fixed Expenses Total Variable Expenses Variable Cost of Goods Sold Variable Selling and Administrative Expenses $

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