User Account

All Pages

Make an income statement for the year

Assignment Help Accounting Basics
Reference no: EM131810322

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

Variable costs per unit:

Manufacturing:

Direct materials

$19

Direct labor

$9

Variable manufacturing overhead

$3

Variable selling and administrative

$4

Fixed costs per year:

Fixed manufacturing overhead

$202,400

Fixed selling and administrative

$65,000

During the year, the company produced 18,400 units and sold 15,200 units. The selling price of the company's product is $65 per unit.

Requirement 1: Assume that the company uses absorption costing:

(a) Compute the unit product cost.

(b) Prepare an income statement for the year.

Requirement 2: Assume that the company uses variable costing:

(a) Compute the unit product cost.

(b) Prepare an income statement for the year.

Reference no: EM131810322

Questions Cloud

Produce an after-tax rate of return : For depreciation, a salvage value of zero was used. Bonnie wants a 15% after-tax rate of return on her investment.
Find chance that counter is hit by at most four particles : Radioactive substances emit a-particles. The number of such particles reaching a counter over a given time period follows the Poisson distribution.
Discuss how much gain is recognized by parent as a result : How much gain is recognized by Parent as a result of the liquidation
What advice would you give to wanda : What advice would you give to Wanda? Take into consideration both quantitative and quantitative factors.
Make an income statement for the year : During the year, the company produced 18,400 units and sold 15,200 units. Prepare an income statement for the year
What is the gain from the given transaction for blue company : Blue company sold machinery for $55,000 on December 23 2007. What is the 1231 gain from this transaction? What is the 1245 recapture gain from this transaction?
What is danas realized gain and recognized gain : What is Dana's realized gain and recognized gain resulting from the merger
Compute the after-tax rate of return : Using the answer from Problem 12-9, set up the equation to compute the after-tax rate of return for each scenario:
What advice would you give to roger lalonde : Assume the role of Marie Walters; what would you do? What advice would you give to Roger Lalonde?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Perfect competition and monopoly

The City of Columbus, Ohio, is considering two pro- posals to privatize municipal garbage collection. First, a leading waste disposal firm has offered to purchase the city's plant and equipment at an attractive price in return for an exclusive fra..

  Impact of globalization on international accounting harmoniz

Impact of Globalization on international Accounting Harmonization

  Determine the interest payment for the bonds

Determine the interest payment for the bonds: 3 ½ percent coupon corporate bond (paid semi-annually), 4.25 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

  Determine which of the segments are reportable

Metlock Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment.

  What is the investment turnover for espinosa

What is the investment turnover for Espinosa, Espinosa Corporation had $1,063,724.00 in invested assets

  Loss contingency accrued in a company financial statements

A loss contingency shoulf be accrued in a company's financial statements only if the likelihood that a liability has been incurred is:

  Better butterscotch company wants to expand production

Better Butterscotch Company wants to expand production

  How long will it take to double your money if you solve

you invest 200 into a mutual fund today that pays 5.0 percent interest. how long will it take to double your money? if

  Process of determining

__________ is the process of determining which people will enter what occupations through tracking and placing select students in "ability groups" and "advanced" classes.

  Assuming both companies use the percent of receivables

Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

  Prepare a budgeted income statement

Russell Company has the following projected account balances for June 30, 20X9: Prepare a budgeted income statement AND a budgeted balance sheet

  The chris pine company a publicly owned retailer of

the chris pine company a publicly owned retailer of christmaspine trees issued 1000 shares of 1par value common stock

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