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Addison, Incorporated makes a single product, an indoor fireplace. Data for last year is as follows: Selling price per fireplace Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory nits produced during the year Units sold during the year Required: Use the data to answer the following. L. Assume the company uses variable costing: Compute the unit product cost for one fireplace $420 Prepare a contribution margin income statement for the year $135 $43 $37 $210,000 $45 $190,000 Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.) 0 5,000 4,500

Addison, Incorporated makes a single product, an indoor fireplace. Data for last year is as follows: Selling price per fireplace Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory nits produced during the year Units sold during the year Required: Use the data to answer the following. L. Assume the company uses variable costing: Compute the unit product cost for one fireplace $420 Prepare a contribution margin income statement for the year $135 $43 $37 $210,000 $45 $190,000 Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.) 0 5,000 4,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Addison, Incorporated makes a single product, an indoor fireplace. Data for last year is as follows: Selling price per fireplace Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory Units produced during the year Units sold during the year Required: Use the data to answer the following. Compute the unit product cost for one fireplace $420 Prepare a contribution margin income statement for the year $135 $43 $37 $210,000 $45 $190,000 (Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.) 1. Assume the company uses variable costing: 0 5,000 4,500
Transcribed Image Text:Addison, Incorporated makes a single product, an indoor fireplace. Data for last year is as follows: Selling price per fireplace Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year Units in beginning inventory Units produced during the year Units sold during the year Required: Use the data to answer the following. Compute the unit product cost for one fireplace $420 Prepare a contribution margin income statement for the year $135 $43 $37 $210,000 $45 $190,000 (Use cells A4 to B17 from the given information, as well as A26 to C52 to complete this question. All answers should be input and displayed as positive values.) 1. Assume the company uses variable costing: 0 5,000 4,500
Prepare a contribution margin income statement for the year Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income Compute the number of fireplaces required to break even 2. Assume the company uses absorption costing: Compute the unit product cost for one fireplace Prepare an income statement for the year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Was fixed overhead deferred to or released from inventory? Fixed overhead was: Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignment.
Transcribed Image Text:Prepare a contribution margin income statement for the year Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income Compute the number of fireplaces required to break even 2. Assume the company uses absorption costing: Compute the unit product cost for one fireplace Prepare an income statement for the year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Was fixed overhead deferred to or released from inventory? Fixed overhead was: Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignment.
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