Question
INCLUDE PROCEDURES Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 7,000
INCLUDE PROCEDURES
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 7,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:
| 2021 | 2022 | |
|---|---|---|
| Units sold | 5,500 | 3,000 |
| Units produced | 7,000 | 4,000 |
| Costs: | ||
| Variable factory overhead per unit | $ 0.15 | $ 0.15 |
| Fixed factory overhead | $ 1,400 | $ 800 |
| Variable marketing per unit | $ 0.30 | $ 0.30 |
| Fixed Selling and Administrative | $ 320 | $ 320 |
Full costing operating income for 2021 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
