During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. Prepare an income statement using absorption costing. Enter amounts as positive numbers. Osterman Company Income Statement under Absorption Costing For the Most Recent Year Sales Less: Cost of goods sold Gross margin Less: Selling and administrative expenses Operating income
During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. Prepare an income statement using absorption costing. Enter amounts as positive numbers. Osterman Company Income Statement under Absorption Costing For the Most Recent Year Sales Less: Cost of goods sold Gross margin Less: Selling and administrative expenses Operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following data:
| Units in beginning inventory | — |
| Units produced | 10,000 |
| Units sold ($47 per unit) | 9,300 |
| Variable costs per unit: | |
| Direct materials | $9 |
| Direct labor | $6 |
| Variable |
$4 |
| Fixed costs: | |
| Fixed overhead per unit produced | $5 |
| Fixed selling and administrative | $138,000 |
Required:
1. Calculate the cost of goods sold under absorption costing.
Prepare an income statement using absorption costing. Enter amounts as positive numbers.
| Osterman Company | |
| Income Statement under Absorption Costing | |
| For the Most Recent Year | |
| Sales | |
| Less: Cost of goods sold | |
| Gross margin | |
| Less: Selling and administrative expenses | |
| Operating income |
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