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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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