The following information pertains to Synergy Inc. for last year: Assume that the selling price is $32

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The following information pertains to Synergy Inc. for last year:

Beginning inventory in units Units produced Units sold 20,000 17,200 Costs per unit: Direct materials $8.00 $4.00 Direct

Assume that the selling price is $32 per unit.
Required:
1. Prepare an income statement using absorption costing.
2. Prepare an income statement using variable costing.

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Cornerstones of Managerial Accounting

ISBN: 978-0176530884

2nd Canadian edition

Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman

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Question Posted: Nov 30, 2017 09:30 AM

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The following information pertains to Synergy Inc. for last year: Assume that the selling price is $32

Question:

Beginning inventory in units Units produced Units sold 20,000 17,200 Costs per unit: Direct materials $8.00 $4.00 Direct labour Variable overhead Fixed overhead* Variable selling expenses Fixed selling and administrative costs * Fixed overhead totals $83,000 per year. $1.50 $4.15 $3.00 $24,300

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1 Absorptioncosting income Sales 32 17200 550400 Less Co...View the full answer

Cornerstones of Managerial Accounting

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