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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