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Shamrock Motors is a division of Shamrock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Shamrock Motors is a division of Shamrock Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 220,000 units for $8.00 per unit. Kimberly Young is the division manager. She is considering producing either 220,000 or 270,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory 0 Expected sales in units 220,000 Selling price per unit $8.00 Variable manufacturing cost per unit $2.70 Fixed manufacturing cost (total) $594,000 Fixed manufacturing overhead costs per unit Based on 220,000 units $2.70 per unit ($594,000 + 220,000) Based on 270,000 units $2.20 per unit ($594,000 - 270,000) Manufacturing cost per unit Based on 220,000 units $5.40 per unit ($2.70 variable + $2.70 fixed) Based on 270,000 units $4.90 per unit ($2.70 variable + $2.20 fixed) Variable selling and administrative expenses $0.50 per unit Fixed selling and administrative expenses (total) $11,900 Prepare an absorption-costing income statement, with one column showing the results if 220,000 units are produced and one column showing the results if 270,000 units are produced. SHAMROCKMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Units produced 270,000 220,000 Units sold $ Save for Later Attempts: 0 of 2 used Submit
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