4. Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,500 units were budgeted, 2,300 unit produced, and 1,800 units were sold. Fixed manufacturing cost is allocated based on budgeted production. Other information for the month includes: Variable manufacturing costs $23.00 per unit Variable marketing costs $7.00 per unit Advertising per unit $1.20 Total Fixed manufacturing costs $50,000 Total Fixed Administrative expenses $52,500 Ending inventories: Direct materials -0- WIP -0- Finished goods 500 units What is operating income using absorption costing?
4. Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,500 units were budgeted, 2,300 unit produced, and 1,800 units were sold. Fixed manufacturing cost is allocated based on budgeted production. Other information for the month includes: Variable manufacturing costs $23.00 per unit Variable marketing costs $7.00 per unit Advertising per unit $1.20 Total Fixed manufacturing costs $50,000 Total Fixed Administrative expenses $52,500 Ending inventories: Direct materials -0- WIP -0- Finished goods 500 units What is operating income using absorption costing?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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4.
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,500 units were budgeted, 2,300 unit produced, and 1,800 units were sold. Fixed manufacturing cost is allocated based on budgeted production. Other information for the month includes:
| Variable |
$23.00 per unit |
| Variable marketing costs | $7.00 per unit |
| Advertising per unit | $1.20 |
| Total Fixed manufacturing costs | $50,000 |
| Total Fixed Administrative expenses | $52,500 |
Ending inventories:
| Direct materials | -0- |
| WIP | -0- |
| Finished goods | 500 units |
What is operating income using absorption costing?
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