02dcesDenton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit::Direct materials.Direct laborVariable manufacturing overheadVariable selling and administrativeTotal variable cost per unitFixed costs per month:Fixed manufacturing overhead$ 72,000Fixed selling and administrative166,000Total fixed cost per month$ 238,000The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow:JulyAugustUnitsProducedUnits Sold14,00022,000The company's Accounting Department prepared the following absorption costing income statements for July and August:JulyAugust$ 700,000 $1,100,000336,000364,000194,000$ 170,000Required:18,00018,000SalesCost of goods sold.Gross marginSelling and administrative expensesNet operating income.$61132$ 22528,000572,000210,000$362,000 02dcesDenton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit::Direct materials.Direct laborVariable manufacturing overheadVariable selling and administrativeTotal variable cost per unitFixed costs per month:Fixed manufacturing overhead$ 72,000Fixed selling and administrative166,000Total fixed cost per month$ 238,000The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow:JulyAugustUnitsProducedUnits Sold14,00022,000The company's Accounting Department prepared the following absorption costing income statements for July and August:JulyAugust$ 700,000 $1,100,000336,000364,000194,000$ 170,000Required:18,00018,000SalesCost of goods sold.Gross marginSelling and administrative expensesNet operating income.$61132$ 22528,000572,000210,000$362,000

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Description: 02dcesDenton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit::Direct materials.Direct laborVariable manufacturing overheadVariable selling and administrativeTotal variable cost per unitFix

Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Business

Accounting

Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 238,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced Sales Cost of goods sold 18,000 18,000 Units Sold 14,000 22,000 Gross margin Selling and administrative expenses Net operating income $6 11 The company's Accounting Department prepared the following absorption costing income statements for July and August: July August $ 700,000 $1,100,000 336,000 3 2 $ 22 364,000 194,000 $ 170,000 528,000 572,000 210,000 $362,000

Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 238,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced Sales Cost of goods sold 18,000 18,000 Units Sold 14,000 22,000 Gross margin Selling and administrative expenses Net operating income $6 11 The company's Accounting Department prepared the following absorption costing income statements for July and August: July August $ 700,000 $1,100,000 336,000 3 2 $ 22 364,000 194,000 $ 170,000 528,000 572,000 210,000 $362,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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