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What am I doing wrong? Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:
What am I doing wrong?
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit Manufacturing 12 Direct materials Direct labor Variable manufacturing overhead 2 Variable selling and administrative 2 Fixed costs per year. $248,000 Fixed manufacturing overhead Fixed selling and administrative 158,000 During the year the company produced 31,000 units and sold 21.000 units. The selling price of the company's product is 544 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Answer is complete and correct Unit product cost b. Prepare an income statement for the year. Answer is complete but not entirely correct Lynch Company Absorption Costing Income Statement Sales 924 609.000 Cost of goods sold Gross margin 315.000 158,000X Total selling and administrative expense Net operating income 5.000Step by Step Solution
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