Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit Direct materials $ 136 per unit Direct labor $ 66 per unit Variable overhead $ 44 per unit Fixed overhead $ 175,000 per year Variable selling and administrative expenses $ 21 per unit Fixed selling and administrative expenses $ 210,000 per year Units produced 14,000 units per year Units sold 14,000 units per year Compute the target selling price per unit under absorption costing (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Por unit $ 0.00 Product cost per unit using absorption costing Target markup per unit Target selling price per unit $ 0.00 Sims Company began operations on January 1. Its cost and sales information for this year follow, Direct materials $40 per unit Direct labor $ 6e per unit Variable overhead $ 20 per unit Fixed overhead $ 8,400,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,500,000 per year Units produced 105,000 units Units sold 75,000 units Sales price 5 360 per unit 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare an income statement for the year using variable costing, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) 0 0 Income Required 2 > Variable selling and administr expense Fixed selling and administrative expenses Units produced Units sold Sales price $ 4,500,00 105,00 75,00 $ 3 7. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: John J. Wild

9th Edition

1260728773, 9781260728774

More Books

Students also viewed these Accounting questions