Rey companys singie proauct seis at a price or S233 per unit. Data tor its Singi

Question

Rey companys singie proauct seis at a price or S233 per unit. Data tor its Singie proauct tor Its Tirst year or operations follow. Direct materials Direct labor Overhead costs 37 per unit 45 per unit Variable overhead 7 per unit Fixed overhead per year $ 225,000 per year Selling and administrative expenses Variable Fixed Units produced and sold 35 per unit $ 234,000 per year 25,000 units 1. Prepare an income statement for the year using absorption costing REY COMPANY Absorption Costing Income Statement

Explanation / Answer

Absorption Costing Income Statement Total No. Of Units 25000 Per unit sales 233 $5,825,000 Less: cost of Good sold     Direct materials 37 925000     Direct labor cost 45 1125000     Variable manufacturing overhead 7 175000     Fixed manufacturing overhead 225000 Cost of Good Sold 2450000 Gross profit $3,375,000 Less: Selling & Administrative Expenses Variable Selling & Administrative Expenses (35*25000) 875000 FixedSelling & Administrative Expenses 234000 1109000 Net Income $2,266,000 Unit Cost= COGS/Units                    $ 98.00 Variable Costing Income Statement No .0f units     S 25000 Per unit Sales 233 $5,825,000 Less: Variable Cost     Direct materials 37 925000     Direct labor cost 45 1125000     Variable manufacturing overhead 7 175000 Variable Selling & Administrative Expenses 35 875000 Variable Cost   V 3100000 Contribution Margin $2,725,000 Fixed Cost     Fixed manufacturing overhead 225000 FixedSelling & Administrative Expenses 234000 459000 Income Ans B $2,266,000 Unit Cost= Variable Cost/No. Of units sold   V/S $ 124.00

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.