Compute the unit product cost for given time

Reference no: EM131763474

Question: Walsh company manufactures and sells one product. The follwoing information pertains to each of the company's first two years of operations: During its first years of operations, Walsh produced 50k units and sold 40k units. During its second year of operations, it produced 40k units and sold 50k units. The selling price of the company's product is $60 per unit.

1. Assume the company uses variable costing

a. Compute the unit product cost for Year 1 and Year 2

b. Prepare an Income statment for Year 1 and Year 2

2. Assume the company uses Absorption Costing

a. Compute the unit product cost for Year 1 and Year 2

b. Prepare an Income statment for Year 1 and Year 2

Direct Materials $25

Direct Labor $15

Variable Mfg Overhead $5

Variable selling and admin $2

Fixed Mfg Overhead $250,000

Fixed Selling and Admin $80,000

Reference no: EM131763474

Questions Cloud

Discuss any ethical issues that gillespie should consider : Mickey Gillespie is the controller of Print Technologies, a publicly owned company. Discuss any ethical issues that Gillespie should consider

Explain the problem the author of the article addresses : Explain the problem the author of the article addresses. Explain how the author deals with the problem (the author's methodology).

What is the current yield of the bond : What is the current yield of the bond. The bond is selling at market price of 1276.

Being marked on quality of communication and reasoning : Being marked on quality of communication, demonstrated knowledge and reasoning

Compute the unit product cost for given time : Walsh company manufactures and sells one product. The follwoing information pertains to each of the company's first two years of operations.

Calculation of the weighted average cost : Suppose you are trying to estimate the cost of equity for a firm as part of the calculation of the Weighted Average Cost of Capital (WACC).

Prepare a financial analysis of two projects : You have been asked to prepare a financial analysis of two projects and based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index.

Determine the net present value of this investment : Determine the net present value of this investment, assuming an interest rate of 20%

Face value corporate bond : Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 30-year maturity.

User Account

All Pages