Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 55,000 units 33,000 units $ 19 per unit $ 21 per unit $ 3 per unit $ 343,750 in total Belle Company's product is sold for $71 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $270,000 per year. Compute the net income under absorption costing.
Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units produced this year Units sold this year Direct materials Direct labor Variable overhead Fixed overhead 55,000 units 33,000 units $ 19 per unit $ 21 per unit $ 3 per unit $ 343,750 in total Belle Company's product is sold for $71 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $270,000 per year. Compute the net income under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Units produced this year
Units sold this year
Direct materials
Direct labor
Variable overhead
Fixed overhead
55,000 units
33,000 units
$ 19 per unit
$ 21 per unit
$3 per unit
$ 343,750 in total
Belle Company's product is sold for $71 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is
$270,000 per year. Compute the net income under absorption costing.
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