During the first month of operations ended May 31, Big Sky Creations Company produced 40,000 designer cowboy boots, of which 38,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: 3 Direct materials 4 Direct labor 5 Variable manufacturing cost Fixed manufacturing cost 7 Selling and administrative expenses: 8 Variable Fixed Sales 2 Manufacturing costs: 3 Direct materials Direct labor 5 Variable manufacturing cost 4 $960,000.00 2,000,000.00 520,000.00 120,000.00 Fixed manufacturing cost $72,000.00 80,000.00 During June, Big Sky Creations produced 32,000 designer cowboy boots and sold 38,000 cowboy boots. Operating data for June are summarized as follows: $4,500,000.00 $768,000.00 1,600,000.00 416,000.00 120.000.00 3,600,000.00 152,000.00 $4,500,000.00 2 904 000 00

During the first month of operations ended May 31, Big Sky Creations Company produced 40,000 designer cowboy boots, of which 38,000 were sold. Operating data for the month are summarized as follows: 1 Sales 2 Manufacturing costs: 3 Direct materials 4 Direct labor 5 Variable manufacturing cost Fixed manufacturing cost 7 Selling and administrative expenses: 8 Variable Fixed Sales 2 Manufacturing costs: 3 Direct materials Direct labor 5 Variable manufacturing cost 4 $960,000.00 2,000,000.00 520,000.00 120,000.00 Fixed manufacturing cost $72,000.00 80,000.00 During June, Big Sky Creations produced 32,000 designer cowboy boots and sold 38,000 cowboy boots. Operating data for June are summarized as follows: $4,500,000.00 $768,000.00 1,600,000.00 416,000.00 120.000.00 3,600,000.00 152,000.00 $4,500,000.00 2 904 000 00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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