Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process). Total Cost Number of Units Unit Cost Manufacturing costs: Variable $465,000 30,000 $15.50 Fixed 210,000 30,000 7.00 Total $675,000 $22.50 Selling and administrative expenses: Variable $2 per unit sold Fixed $39,000 In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit. (a) Prepare a variable costing income statement. (b) Prepare an absorption costing income statement. (c) What is the fixed overhead deferred under absorption costing?
Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process). Total Cost Number of Units Unit Cost Manufacturing costs: Variable $465,000 30,000 $15.50 Fixed 210,000 30,000 7.00 Total $675,000 $22.50 Selling and administrative expenses: Variable $2 per unit sold Fixed $39,000 In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit. (a) Prepare a variable costing income statement. (b) Prepare an absorption costing income statement. (c) What is the fixed overhead deferred under absorption costing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process).
|
|
Total Cost |
Number of Units |
Unit Cost |
|
Manufacturing costs: |
|
|
|
|
Variable |
$465,000 |
30,000 |
$15.50 |
|
Fixed |
210,000 |
30,000 |
7.00 |
|
Total |
$675,000 |
|
$22.50 |
|
|
|
|
|
|
Selling and administrative expenses: |
|
|
Variable |
$2 per unit sold |
|
Fixed |
$39,000 |
|
|
|
In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.
|
(a) |
Prepare a variable costing income statement. |
|
(b) |
Prepare an absorption costing income statement. |
|
(c) |
What is the fixed |
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