Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year.   Direct materials $ 12 Direct labor 8 Variable overhead 5 Variable selling and administrative expenses 2

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 7,450 rackets and sold 5,630. Each racket was sold at a price of $90. Fixed overhead costs are $96,850 per year, and fixed selling and administrative costs are $68,200 per year. The company also reports the following per unit variable costs for the year.
 

Direct materials $ 12
Direct labor 8
Variable overhead 5
Variable selling and administrative expenses 2
Prepare an Income statement under absorption costing.
ACES INCORPORATED
Income Statement (Absorption Costing)
$
30
0
0
Transcribed Image Text:Prepare an Income statement under absorption costing. ACES INCORPORATED Income Statement (Absorption Costing) $ 30 0 0
Compute the cost of ending finished goods Inventory reported on the balance
sheet using variable costing.
Finished goods inventory under variable costing
Product cost per unit
Finished goods inventory reported on balance sheet
$
0
Transcribed Image Text:Compute the cost of ending finished goods Inventory reported on the balance sheet using variable costing. Finished goods inventory under variable costing Product cost per unit Finished goods inventory reported on balance sheet $ 0
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