User Account

All Pages

Compute unit product cost and prepare an income statement

Assignment Help Accounting Basics
Reference no: EM132069516

Question - A Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations:

Variable cost per year:

Direct Materials $18

Direct labor $7

Variable manufacturing overhead $2

Variable selling and administrative $5

Fixed cost per year:

Fixed manufacturing overhead $160,000

Fixed selling and administrative $110,000

During the year, the company produced 20,000 Units and sold 16,000 units. The selling price of the company's product is $50 per unit.

Assume Ingle Company uses the absorption costing method. Compute the unit product cost and prepare an income statement for the year.

Assume Ingle Company uses the variable costing method. Compute the unit product cost and prepare a contribution format income statement for the year.

Explain (specifically) why the two methods on the previous page yield different net incomes. Be sure to use numbers relating to this problem.

Reference no: EM132069516

Questions Cloud

Methodical problem solving strategies in project management : This assignment will assess the following competency: Develop methodical problem solving strategies in project management.
Improve organisational procedures for record keeping : What recommendations would you give to improve organisational procedures for record keeping?
Describe organizational barrier and financial barrier : Identify and briefly describe one organizational barrier and one financial barrier relating to the suicide- and homicide-prone. Create two recommendations.
What improvements or changes need to be made : Assume you are Kendra. What would you want to say at the retrospective? How would you say it? What improvements or changes need to be made?
Compute unit product cost and prepare an income statement : Assume Ingle Company uses the absorption costing method. Compute the unit product cost and prepare an income statement for the year
Case study-was google wrong : Google has fired an employee who wrote a controversial memo opposed to diversity programmes and hiring practices.
Calculate the average days in inventory : The average inventory for the year amounted to $2,500,000. The average days in inventory during the year was approximately
What side would the cane go on : The project is to write a one page paper on patient teaching how to use a cane. The difference between 2 gait, 3 gait, and 4 gait canes.
Calculate the inventory turnover ratio for the year : The average inventory for the year amounted to $2,500,000. The inventory turnover ratio for the year is

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much money will you have on the date of your retirement

Your job pays you only once a year for all the work you did. How much money will you have on the date of your retirement 35 years from today?

  Your firm has selected you to develop and assess the

your firm has selected you to develop and assess the control risk over shipping and billing functions of abc company.

  Prepare variable costing contribution income statement

Redo the company's income statement for the quarter using absorption costing. Compute the unit product cost under absorption costing

  What will operating income be

the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

  What is the breakeven point in sales dollars

What is the breakeven point in sales dollars

  What are the differences between the LIFO and FIFO methods

The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method

  Provide the highest ending inventory balance

Which inventory cost flow method would provide the highest ending inventory balance? How would this affect the net income of the company?

  Prepare appropriate journal entry to record march purchases

Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan.

  The predetermined overhead allocation rate for harris inc

the predetermined overhead allocation rate for harris inc. is based on estimated direct labor costs of 400000 and

  What total amount should be credited to additional paid

What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock

  Joel henry founded bookmart com at the beginning of august

Joel Henry founded Bookmart.com at the beginning of August, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. Help Joel by preparing journal entries for the following events. If the ..

  Formulate kleins hedging strategy using only the futures

u.s. government bond portfolio for an institution. she anticipates a small parallel shift in the yield curve and wants

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd