The following data pertain to last year's operations at Clarkson, Incorporated, a company that produces a single product:Units in beginning inventoryUnits producedUnits soldSelling price per unitVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrative expenseFixed expenses per year:Fixed manufacturing overheadFixed selling and administrative expenseWhat was the absorption costing net operating income last year?0100,00098,000$ 10.00$ 1.50$ 2.50$ 1.00$ 2.00$200,000$ 50,000 O$50,000$44,000$48,000$49,000

An income statement made under absorption costing to find net income of the year depends on costs…

Answered: costing net operating income

Business

Accounting

costing net operating income

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 29P: Jellison Company had the following operating data for its first two years of operations: Jellison...

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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. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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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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