Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Trio Company reports the following information for the current year, which is its first year of operations. 12 per unit 18 per unit Direct materials
Trio Company reports the following information for the current year, which is its first year of operations. 12 per unit 18 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Units produced this year Units sold this year Ending finished goods inventory in units 2 per unit $ 80,000 per year 20,000 units 14,000 units 6,000 units 1. Compute the product cost per unit using absorption costing. Cost per unit of finished goods using: Absorption costing Direct materials per unit 12.00 Direct labor per unit 18.00 Variable overhead per unit 2.00 Cost per unit of finished goods 32.00 2. Determine the cost of ending finished goods inventory using absorption costing. Cost per unit of finished goods using: Absorption costing Number of units in finished goods Total cost of finished goods inventory 3. Determine the cost of goods sold using absorption costing. Cost per unit of goods sold using: Absorption costing Number of units in sold goods Total cost of sold goods Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $3,600 each. Variable selling expenses are $310 per ATV. The remaining selling expenses are fixed. Administrative expenses are 20% variable and 80% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,860 each. POLARIX Income Statement-Consumer ATV Department For Year Ended December 31 Sales $608,400 Cost of goods sold 314, 340 Gross margin 294,060 Operating expenses Selling expenses $140,000 Administrative expenses 41,400 181,400 Net income $112,660 Required: 1. Prepare an income statement for the current year using the contribution margin format. (Do not round intermediate calculations. Round contribution margin per ATV value to the nearest whole number.) POLARIX Income Statement - Consumer ATV Department For Year Ended December 31 Sales Less: Variable expenses Variable cost of goods sold Variable selling expenses Variable administrative expenses Contribution margin Less: Fixed expenses Fixed selling expenses Fixed administrative expenses Net income (loss) 2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income? Contribution margin per ATV
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started