subject
Business, 17.04.2020 23:15 sarahelisabeth444

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

2014 2015
Sales ($46 per unit) $920,000 $1,840,000
Cost of goods sold ($31 per unit) 620,000 1,240,000
Gross margin 300,000 600,000
Selling and administrative expenses 290,000 340,000
Net income $10,000 $260,000

a. Sales and production data for these first two years follow.

2014 2015
Units produced 30,000 30,000
Units sold 20,000 40,000

b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following.

Direct materials $5
Direct labor 9
Variable overhead 7
Fixed overhead ($300,000/30,000 units) 10
Total product cost per unit $31

c. Selling and administrative expenses consist of the following.

2014 2015
Variable selling and administrative expenses ($2.50 per unit) $50,000 $100,000
Fixed selling and administrative expenses 240,000 240,000
Total selling and administrative expenses $290,000 $340,000

Required:
1. Complete income statements for the company for each of its first two years under variable costing.
2. What are the differences between the absorption costing income and the variable costing income for these two years? (Loss amounts should be entered with a minus sign.)

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 19:00, vpoon6739
If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of
Answers: 1
image
Business, 22.06.2019 02:00, Lena3055
What is the main role of ctsos at the local level? at the local level, the main role of ctsos is to encourage students to become urge them to programs and competitive events.1. a. internsb. traineesc. members2.a. participateb. trainc. win
Answers: 3
image
Business, 22.06.2019 04:10, KadaLearns
Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?
Answers: 1
image
Business, 22.06.2019 05:30, DragonWarrior203
From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?
Answers: 1
You know the right answer?
Dowell Company produces a single product. Its income statements under absorption costing for its fir...

Questions in other subjects:

Konu
Mathematics, 29.12.2021 22:00