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For Part B, the missing account name underneath Sales is Not Cost of Goods sold, I put that already and got it wrong. Dilithium Batteries
For Part B, the missing account name underneath Sales is Not Cost of Goods sold, I put that already and got it wrong.
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. Division Information for 2020 Beginning inventory 0 Expected sales in units 60,000 Selling price per unit $34 Variable manufacturing costs per unit $14 Fixed manufacturing overhead costs (total) $540,000 Fixed manufacturing overhead costs per unit: Based on 60,000 units $9 per unit ($540,000 - 50.000) Based on 90.000 units $6 per unit ($540.000 = 90.000) Manufacturing cost per unit: Based on 60.000 units $23 per unit ($14 variable + $9 fixed) Based on 90,000 units $20 per unit ($14 variable + $6 fixed) Variable selling and administrative expenses $3 Fixed selling and administrative expenses (total) $50,000 (a) Your answer is correct. 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 90,000 Produced Produced Sales 2.040,000 2,040,000 $ Cost of Goods Sold 1.380,000 i 1.200,000 Gross Profit 660,000 840,000 Variable Selling and Administrative Expenses 180,000 i 180,000 i Fixed Selling and Administrative Expenses 50,000 50,000 Net Income (Loss) 430,000 $ 610,000 (b) Your answer is partially correct. 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 Variable Costing 60,000 Produced 2040000 90,000 Produced 2040000 Sales 840,000 i 840000 i 180000 i 180000 i Variable Selling and Administrative Expenses Contribution Margin 1020000 1020000 540000 i Fixed Manufacturing Overhead Fixed Selling and Administrative Expenses 50000 i 50000 i Net Income/(Loss) LA 430000 $ e Textbook and Media Assistance Used Save for Later Last saved 51 minutes ago. Attempts: 3 of 5 used Submit
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