Management assigned you the duty of producing financial reports that accurately apply and interpret data for a variety of their business activities using an appropriate technique (absorption costing and variable costing).

You have gathered the following information for the report.

Variable costs per unit:

Manufacturing:

Direct materials .......................................... $6

Direct labor............................................... $9

Variable manufacturing overhead ............... $3

Variable selling and administrative ............. $4

Fixed costs per year:

Fixed manufacturing overhead....................... $300,000

Fixed selling and administrative ..................... $190,000

During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit.

In the form of a report, answer the following criteria. Preparing basic financial accounts in compliance with accounting principles, conventions, and standards for unincorporated and small commercial organizations

• Critically evaluate the financial accounts to assess organizational performance using a variety of criteria and standards.
• Produce necessary modifications to financial statements based on a trial balance.
• Prepare financial accounts for sole traders, partnerships, and not-for-profit organizations using a trial balance to comply with accounting principles, conventions, and standards.