Blue Sky Company reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit. Production costs: Direct materials per unit Direct lavor per unit Variable overhead per unit Fixed overhead for the year $ 54 $ 20 $6 $ 4,62,000 Selling and administrative cost: Variable selling and administrative cost per unit Fixed selling and administrative cost per year Assume that this company uses variable costing. $ 9 $ 1,10,000 a. Determine its unit product cost (Omit the '$' sign in your response.) b. Prepare its income statement for the year under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the '$' sign in your response.)

Blue Sky Company reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit. Production costs: Direct materials per unit Direct lavor per unit Variable overhead per unit Fixed overhead for the year $ 54 $ 20 $6 $ 4,62,000 Selling and administrative cost: Variable selling and administrative cost per unit Fixed selling and administrative cost per year Assume that this company uses variable costing. $ 9 $ 1,10,000 a. Determine its unit product cost (Omit the '$' sign in your response.) b. Prepare its income statement for the year under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the '$' sign in your response.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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