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Question: Zola Company manufactures and sells one product. The following information pertains to the company's first year of operations:
Variable cost per unit:
Direct materials $ 16.00
Fixed costs per year:
Direct labor $ 231,000
Fixed manufacturing overhead $ 270,000
Fixed selling and administrative expenses $ 80,000
The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 21,000 units and sold 16,800 units. The selling price of the company's product is $60.80 per unit.
Required: 1. Assume the company uses super-variable costing:
a. Compute the unit product cost for the year. (Round your answer to 2 decimal places.)
b. Prepare an income statement for the year.
Please prepare a flowchart with appropriate flowchart symbols to represent the procedures and documents for cash collections from credit customers.
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