During 2022, Novak Corp. produced 47,340 units and sold 47,340 for $14.00 per unit. Variable manufacturing costs were $5.00 per unit. Annual fixed manufacturing overhead was $94,680 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $10,520. Suppose the accountant for Novak Corp. uses normal-absorption costing and uses the budgeted volume of 52,600 units to allocate the fixed overhead rather than the actual production volume of 47,340 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. (a) * Your answer is incorrect. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Manufacturing cost eTextbook and Media 7.00 per unit
During 2022, Novak Corp. produced 47,340 units and sold 47,340 for $14.00 per unit. Variable manufacturing costs were $5.00 per unit. Annual fixed manufacturing overhead was $94,680 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $10,520. Suppose the accountant for Novak Corp. uses normal-absorption costing and uses the budgeted volume of 52,600 units to allocate the fixed overhead rather than the actual production volume of 47,340 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. (a) * Your answer is incorrect. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.) Manufacturing cost eTextbook and Media 7.00 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare a normal-absorption-costing income statement for the first year of operation.
Sales
Cost of goods sold
Cost of goods sold
Less
#
Gross margin
Fixed costs
Gross ma Sales
Operatin
Beginning inventory
Cost of goods sold
Costs of goods manufactured
Variable costs
Contribution margin
Less ✓ Selling and administrative expenses
Ending inventory
Volume variance
Operating income
NovakCorp.
Income Statement-Normal-Absorption Costing
For the Year Ended December 31, 2022
Prepare a normal-absorption-costing income statement for the first year of operation.
Variable costs
Operating income
✔Cost of goods sold
Gross margin
Selling and administrative expenses
Ending inventory
Costs of goods manufactured
Contribution margin
Beginning inventory
Sales
Volume variance
Gross margin
Fixed costs
NovakCorp.
Income Statement-Normal-Absorption Costing
For the Year Ended December 31, 2022
Operating income
Less: Selling and administrative expenses
$
$
662760
662760
Transcribed Image Text:During 2022, Novak Corp. produced 47,340 units and sold 47,340 for $14.00 per unit. Variable manufacturing costs were $5.00 per
unit. Annual fixed manufacturing overhead was $94,680 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit
sold, and fixed selling and administrative expenses were $10,520. Suppose the accountant for Novak Corp. uses normal-absorption
costing and uses the budgeted volume of 52,600 units to allocate the fixed overhead rather than the actual production volume of
47,340 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.
(a)
* Your answer is incorrect.
Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Manufacturing cost $
eTextbook and Media
7.00
per unit
Attempts: 2 of 2 used
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