Beta Company manufactures and 5 sells large size tables to be used in the offices of the executives. One table is sold for $400. The selected data for year 2020 is given below: Manufacturing expenses: Direct materials per unit: $120 Direct labor per unit: $60 Variable manufacturing overhead per unit: $20 Fixed manufacturing overhead per year: $600,000 Non-manufacturing expenses: Variable selling and administrative expense per unit: $40 Fixed selling and administrative expense per year: $900,000 Inventory information: Units in opening inventory: 0 units Units produced during 2020: 10,000 units Units sold during 2020: 9,000 units Units in closing inventory: 1,000 units Required: a) Compute cost of one table under variable costing. [0. b) Prepare income statement if variable costing is used. c) Compute cost of one table under absorption costing. [0

Beta Company manufactures and 5 sells large size tables to be used in the offices of the executives. One table is sold for $400. The selected data for year 2020 is given below: Manufacturing expenses: Direct materials per unit: $120 Direct labor per unit: $60 Variable manufacturing overhead per unit: $20 Fixed manufacturing overhead per year: $600,000 Non-manufacturing expenses: Variable selling and administrative expense per unit: $40 Fixed selling and administrative expense per year: $900,000 Inventory information: Units in opening inventory: 0 units Units produced during 2020: 10,000 units Units sold during 2020: 9,000 units Units in closing inventory: 1,000 units Required: a) Compute cost of one table under variable costing. [0. b) Prepare income statement if variable costing is used. c) Compute cost of one table under absorption costing. [0

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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Question

Please answer the following Accounting questions correctly showing all work and steps needed to complete it.

Beta Company manufactures and
sells large size tables to be used in
the offices of the executives. One
table is sold for $400. The
selected data for year 2020 is
given below:
Manufacturing expenses:
Direct materials per unit: $120
• Direct labor per unit: $60
• Variable manufacturing overhead per unit: $20
Fixed manufacturing overhead per year: $600,000
Non-manufacturing expenses:
Variable selling and administrative expense per unit: $40
• Fixed selling and administrative expense per year: $900,000
Inventory information:
Units in opening inventory: 0 units
Units produced during 2020: 10,000 units
Units sold during 2020: 9,000 units
Units in closing inventory: 1,000 units
Required:
a) Compute cost of one table under variable costing. [0.
b) Prepare income statement if variable costing is used.
c) Compute cost of one table under absorption costing. [0
d) Prepare income statement if absorption costing is used.
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