Klumm company sells the fishing lures for 25 during 2011

Assignment Help Accounting Basics

Reference no: EM13599051

Klumm Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2011, the company incurred the following costs.

Variable Cost per Unit
Direct materials $6.50
Direct labor $2.75

Variable manufacturing overhead $5.75
Variable selling and administrative expenses $3.90
Fixed Costs per Year
Fixed manufacturing overhead $285,000
Fixed selling and administrative expenses $240,100

Klumm Company sells the fishing lures for $25. During 2011, the company sold 80,000 lures and produced 95,000 lures.

Instructions

(a) Assuming the company uses variable costing, calculate Klumm's manufacturing cost per unit for 2011.

(b) Prepare a variable costing income statement for 2011.

(d) Prepare an absorption costing income statement for 2011.

Reference no: EM13599051

Questions Cloud

An outside supplier has offered to sell 30000 units of part : han products manufactures 30000 units of part s-6 each year for use on its production line. at this level of activity

Compute the equivalent units of production for the first : the colorado company manufactures a product that goes through three processing departments. information relating to

There was no work-in-process inventory at the beginning of : cheung company produced 10000 units during the past year but only 8500 of the units were sold. the following additional

Xavier and yolanda have original investments of 50000 and : 1. xavier and yolanda have original investments of 50000 and 100000 respectively in a partnership. the articles of

Klumm company sells the fishing lures for 25 during 2011 : klumm company builds custom fishing lures for sporting goods stores. in its first year of operations 2011 the company

Paul company has an investment in assets of 900000 income : paul company has an investment in assets of 900000 income that is 10 of sales and an roi of 18. from this information

Scott company made a 100000 investment in new machinery : scott company made a 100000 investment in new machinery. assuming the companys margin is 4 what income will be earned

The fairway restaurant chain had a 12 return on a 60000 : the fairway restaurant chain had a 12 return on a 60000 investment in new ovens. the investment resulted in increased

What is the difference between a price ceiling and a price : what is the difference between a price ceiling and a price floor? if a price ceiling is set below the market

User Account

All Pages