Coronado Motors is a division of Coronado Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Jennifer Davis is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 210,000 units 0 210,000 $8.00 $2.30 $504,000 Based on 240,000 units Manufacturing cost per unit Based on 210,000 units Based on 240,000 units $2.40 per unit ($504,000+210,000) $2.10 per unit ($504,000 + 240,000) $4.70 per unit ($2.30 variable + $2.40 fixed) $4.40 per unit ($2.30 variable + $2.10 fixed) $0.30 per unit Variable selling and administrative expenses Fixed selling and administrative expenses (total) $11,100 (a) (b) Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. CORONADOMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced Units sold $ 240,000 210,000
Coronado Motors is a division of Coronado Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Jennifer Davis is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 210,000 units 0 210,000 $8.00 $2.30 $504,000 Based on 240,000 units Manufacturing cost per unit Based on 210,000 units Based on 240,000 units $2.40 per unit ($504,000+210,000) $2.10 per unit ($504,000 + 240,000) $4.70 per unit ($2.30 variable + $2.40 fixed) $4.40 per unit ($2.30 variable + $2.10 fixed) $0.30 per unit Variable selling and administrative expenses Fixed selling and administrative expenses (total) $11,100 (a) (b) Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. CORONADOMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced Units sold $ 240,000 210,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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Transcribed Image Text:Coronado Motors is a division of Coronado Products Corporation. The division manufactures and sells an electric switch used in a
wide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Jennifer Davis is the division
manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows:
Division Information for 2022
Beginning inventory
Expected sales in units
Selling price per unit
Variable manufacturing cost per unit
Fixed manufacturing cost (total)
Fixed manufacturing overhead costs per unit
Based on 210,000 units
0
210,000
$8.00
$2.30
$504,000
Based on 240,000 units
Manufacturing cost per unit
Based on 210,000 units
Based on 240,000 units
$2.40 per unit ($504,000+210,000)
$2.10 per unit ($504,000 + 240,000)
$4.70 per unit ($2.30 variable + $2.40 fixed)
$4.40 per unit ($2.30 variable + $2.10 fixed)
$0.30 per unit
Variable selling and administrative expenses
Fixed selling and administrative expenses (total)
$11,100
(a)
(b)
Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one
column showing the results if 240,000 units are produced.
CORONADOMOTORS DIVISION
Income Statement
For the Year Ended 2022
Variable Costing
Units produced
Units sold
$
240,000
210,000
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