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Problem 2 (25 points). Spahn Corporation has the following information available for the manufacture and sale of its only product for the months of June
Problem 2 (25 points). Spahn Corporation has the following information available for the manufacture and sale of its only product for the months of June and July. There was no work in process inventory in either mouth and no finished goods inventory on June 1. Units Produced Units Sold PRODUCTION AND SALES DATA June 12,000 9.000 July 13,000 15,000 100.00 SALES PRICE AND COST DATA Selling price per unit Manufacturing Costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month Selling and Administrative Expenses: Variable cost per unit Fixed cost per month 8.00 20.00 10.00 260,000 4.00 250,000 REQUIRED: (1) Prepare income statements for the months of June and July using variable costing. Round all cost per unit calculations to four decimal places and all other dollar amounts to the nearest whole dollar. Prepare income statements for the months of June and July using full absorption costing. Round all cost per unit calculations to four decimal places and all other dollar amounts to the nearest whole dollar. (2) 14
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