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Segmented Income Statements, Inventory Valuation For the coming year, Archway Computers Inc. expects to produce and sell 144,000 computers. Of these, 64,000 will be consumer
Segmented Income Statements, Inventory Valuation For the coming year, Archway Computers Inc. expects to produce and sell 144,000 computers. Of these, 64,000 will be consumer (personal computers and 80,000 will be small business computers. Common fixed overhead is $1,700,000. Additional information for the coming year is as follows: 90 Consumer Computer Small Business Computer Price $640 $1,675 Unit direct materials 442 988 Unit direct labour 310 Unit variable overhead Unit variable selling expense Total direct fixed overhead 120,000 350,000 Fixed selling and administrative expense for Archway Computers is $2,960,000 per year. 23 50 Required: 1. Conceptual Connection: Calculate the unit variable cost under variable costing. Total Unit Variable Cost Consumer computers Small business computers Is this cost the same as unit variable product cost? 2. Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small business computers. If a value needs to be deducted, remember to include a negative (-) sign. Archway Computers Inc. Segmented Income Statement For the Coming Year Consumer Computers Small Business Computers Total Less variable expenses: Less direct fixed expenses: mm in n) in 0 Less common fixed expenses
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