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usaroe Corporation manufactures Product X. The following data concerms costs for 2013 Total Cost Number of Units Produced Unit Cost Manufacturing costs: Variable (DM, DL,
usaroe Corporation manufactures Product X. The following data concerms costs for 2013 Total Cost Number of Units Produced Unit Cost Manufacturing costs: Variable (DM, DL, Var MOH) Fixed $375,000 15,000 15,000 Total S525,000 Selling and adm. expenses Variable ($5 per unit sold) Fixed S 60,000 Total S100,000 Product X sells for $60 per unit. There is no beginning inventory. Assume that 15,000 units were produced and 12,000 units were sold a) Compute the variable cost per unit andprepare a variable costing income statement. b) Prepare an absorption costing income statement. Total Cost Number of Units Produced Unit Cost $375,000 $525,000 $60,000 $100,000 15,000 Var Manuf cost per unit $25 10 S35 15,000 S5 15,000 15,000 a) Sales (12,000 X $60) variable cost of goods sold (12,000 ? S25) Variable selling and administrative expenses (12,000 X S5) Contribution margin Fixed manufacturing costs Fixed selling and administrative expenses Net income $720,000 300,000 62.000 150,000 360.000 360,000 ?40.000-190.000 b) S 720,000 Sales (12,000 X $60) Cost of goods sold (12,000 X S35) Gross Profit S 300,000 S 60,000 Less: Variable S & A expenses (12,000 X $5) Fixed S & A expenses Net income
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