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Exercise 6-17 (Part Level Submission) Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred
Exercise 6-17 (Part Level Submission)
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs.
Variable Costs per Unit | ||
Direct materials | $10.05 | |
Direct labor | $4.62 | |
Variable manufacturing overhead | $7.77 | |
Variable selling and administrative expenses | $5.23 | |
Fixed Costs per Year | ||
Fixed manufacturing overhead | $311,550 | |
Fixed selling and administrative expenses | $281,534 |
Siren Company sells the fishing lures for $33.50. During 2020, the company sold 81,000 lures and produced 93,000 lures.
Prepare an absorption costing income statement for 2020. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) SIREN COMPANY Income Statement For the Year Ended December 31, 2020 Absorption Costing Sales 2713500 T cost of Goods Sold 1795200 Gross Profit 9183001 T Variable Selling and Administrative Expenses 418400 Fixed Selling and Administrative Expenses 281534 699934 Net Income/(Loss) -49634
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