Question
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plants operation.
Beginning inventory 0
Units produced 41,000
Units sold 36,000
Selling price per unit $80
Selling and administrative expenses:
Variable per unit $4
Fixed (total) $ 564,000
Manufacturing costs
Direct materials cost per unit $16
Direct labor cost per unit $10
Variable manufacturing overhead cost per unit $2
Fixed manufacturing overhead cost (total) $ 820,000
Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost. (Omit the "$" sign in your response.)
Unit product cost $
b.
Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)
Absorption Costing Income Statement
$
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