Walsh Company manufactures and sells one product. The following information pert
ID: 2555671 • Letter: W
Question
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
.50 x 3 Ways to Calculate x x Chegg Study | Guidec X 21 Questions-50 Slides-ACCT201-OC | Homework 3 C ? ezto.mheducation.com/hm.tpx ps enyWKU?WKU?WKU Webmail-WK WKU Libraries?Undergraduate Cata l h wKU Herald?wKU SGA U Blackboard?WKU Topnet?IT Helpdesk Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations Variable costs per unit Manufacturing Direct materials Direct labor Variable manufacturing overhead $ 27 $ 15 $2 Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses 60,000 $ 320,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $58 per unit. Required: 1. Assume the company uses variable costing a Compute the unit product cost for year 1 and year 2 Year 1 Year 2 Unit product cost b. Prepare an income statement for year 1 and year 2 Walsh Company Income Statement Year 1 Year 2 Variable expenses Total variable expenses Fixed expenses M McGraw-Hill Connec... Solved: Multiproduct.. Check Your Work-G... P Chapter 05.pptx- PoExplanation / Answer
unit product cost a. Year 1 Year 2 unit product cost 44 44 notes Direct materials 27 direct labor 15 Variable manufacturing overhead 2 unit product cost 44 b. income statement year 1 year 2 Sales (40000*58);(50000*58) 2320000 2900000 Variable expenses Variable cost of goods sold 1760000 2200000 Variable selling and adm 40000 50000 total variable expense 1800000 2250000 Contribution margin 520000 650000 Fixed expense Fixed manufacturing overhead 320,000 320,000 Fixed selling & adm expense 60,000 60,000 total fixed expense 380,000 380,000 Net income 140,000 270,000 2) unit product cost a) Year 1 Year 2 unit product cost 50.4 52 notes year 1 year 2 Direct materials 27 27 direct labor 15 15 Variable manufacturing overhead 2 2 FMOH (320,000/50,000)….(320,000/40000) 6.4 8 unit product cost 50.4 52 b) income statement year 1 year 2 Sales 2320000 2900000 cost of goods sold 2016000 2584000 Gross margin 304000 316000 Selling and administrative expense 100,000 110,000 Net income 204,000 206000 cost of goods sold for year 2 (10,000*50.4+40000*52) 3) Reconcilaition year 1 year 2 Variable costing net operating income (loss) 140,000 270,000 add:Deferrred fixed overhead in ending inventory (10000*6.4) 64,000 less:Fixed overhead realeased in beginning inventory(10000*6.4) -64,000 Absoption costing net operatin income (loss) 204,000 206,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.