please fill in the blank spaces. also please explain how to solve. Thank you so
ID: 2527539 • Letter: P
Question
please fill in the blank spaces. also please explain how to solve. Thank you so much!
Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income $1,012,000 $1,932, 000 682, 0001,302, 000 330, 000 630,000 289, 000 329, 000 $ 41, 000 301, 000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 2017 32,00? 32,000 22,000 42,000 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following. $ 5 9 Direct materials Direct labor Variable overhead Fixed overhead ($320, 000/32,000 units) Total product cost per unit 10 $31Explanation / Answer
unit product cost under variable costing direct materials 5 direct labor 9 variable MOH 7 unit product cost under variable costing 21 1) units sold 22,000 42,000 income statement year 1 year 2 Sales 1012000 1932000 less:Variable expenses Variable selling & admi expense ($2) 44000 84000 Variable overhead ($7) 154000 294000 direct labor ($9) 198000 378000 direct materials ($5) 110000 210000 total variable expense 506,000 966,000 contribution margin 506,000 966,000 Fixed expenses fixed manufacturing overhead 320,000 320,000 fixed selling and adm expense 245,000 245,000 total fixed expense 565,000 565,000 net income(loss) -59,000 401,000 2) Reconciliation of variable costing 2014 2015 Variable costing income(loss) -59,000 401,000 Add foh deferred in ending inventory(10000*10) 100,000 less foh realsed in beginning inventory -100,000 Absorption costing income(loss) 41,000 301,000
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