Question
wesltley widgets, Inc produces and sells a unique type of widget. The company has just opened a new plant to manufacture the widgets and the
wesltley widgets, Inc produces and sells a unique type of widget. The company has just opened a new plant to manufacture the widgets and the following cost and revenue data have been provided for the first month of the plant's operation .Beginning inventory, 0 units Units produced 40,000 units units sold 35,000 selling per unit $60 per unit selling and administrative expenses: variables per unit $2 per unit fixed(total) $500,000 Manufacturing cost: Direct materials cost per unit $14 per unit Direct labor cost per unit $7 per unit Variable manufacturing overhead cost per unit $2 per unit fixed manufacturing overhead cost (total) $600,000.
Assume the the company uses absorption costing
A) determine the product cost.
Direct materials per unit=
Direct labor per unit=
Variable manufacturing overhead per unit=
fixed manufacturing overhead per unit=
total product cost per unit=
B) prepare an income statement for the month
Sales (35,000 units)=
less cost of goods sold=
gross profit margin=
less: Variable selling and administrative=
less: fixed selling and administrative =
net income=
Assume that company uses the contribution approach with variable costing.
Determine the product cost.
a) total product cost
B) prepare an income statement for the month.
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