Walsh Company manufacture and sells one product. The following information perta
ID: 2452161 • Letter: W
Question
Walsh Company manufacture and sells one product. The following information pertains to each of the company first two years of operations: During in the year of operations Walsh produced 50000 units and sold 40000 units. During its second year operations. It produced 40000 units and 50000 units. The selling price of the companies produced is 550 per unit. Assuming the company uses variable costing. Complete the unit product cost for year 1 and year 2. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2 Prepare an income statement for year 1 and year 2Explanation / Answer
Answer:1 a & b
Answer:2 a & b
Answer:3
Unit Product Cost Particulars Year1 Year 2 Direct Material 25 25 Direct Labor 15 15 Variable manufacturing overhead 5 5 Unit Product cost 45 45 Income statement Particulars Year1 Year 2 Sales (40000*60) (50000*60) 2400000 3000000 Less: variable expenses Variable cogs (40000*45) (50000*45) 1800000 2250000 Variable selling & Administrative exp (40000*2) (50000*2) 80000 100000 Contribution margin 520000 650000 Less: Fixed expenses Fixed manufacturing overhead 250000 250000 Fixed selling & administrative exp 80000 80000 Net operating income 190000 320000Related Questions
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