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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Required: 1. Assume that the company uses absorption costing a Compute the unit product cost b. Prepare an income statement for the year $14 2. Assume that the company uses variable costing a Compute the unit product cost. b. Prepare an income statement for the year. $3 $1 $1 During the year, the company produced 29,000 units and sold 22.000 units. The selling price of the company's product is $42 per unit. $ 290,000 $ 200,000

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Required: 1. Assume that the company uses absorption costing a Compute the unit product cost b. Prepare an income statement for the year $14 2. Assume that the company uses variable costing a Compute the unit product cost. b. Prepare an income statement for the year. $3 $1 $1 During the year, the company produced 29,000 units and sold 22.000 units. The selling price of the company's product is $42 per unit. $ 290,000 $ 200,000

FINANCIAL ACCOUNTING
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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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost, b. Prepare an income statement for the year. $ 14 $3 $1 $1 During the year, the company produced 29,000 units and sold 22,000 units. The selling price of the company's product is $42 per unit 2. Assume that the company uses variable costing a Compute the unit product cost. b. Prepare an income statement for the year. $ 290,000 $ 200,000 Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost, b. Prepare an income statement for the year. $ 14 $3 $1 $1 During the year, the company produced 29,000 units and sold 22,000 units. The selling price of the company's product is $42 per unit 2. Assume that the company uses variable costing a Compute the unit product cost. b. Prepare an income statement for the year. $ 290,000 $ 200,000 Complete this question by entering your answers in the tabs below.
unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost a. Compute the unit product cost. b. Prepare an income statement for the year. Req 1A Reg 2A 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Req 1A Complete this question by entering your answers in the tabs below. Req 1B Reg 28 Req 18 Reg 2A Compute the unit product cost. Assume that the company uses variable costing Unit product cost Req 2A Req 28 < Reg 1B Req 18 > Req 2B < Req 2A Req 28 > Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement S 0 0 0 0
Transcribed Image Text:unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost a. Compute the unit product cost. b. Prepare an income statement for the year. Req 1A Reg 2A 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year. Req 1A Complete this question by entering your answers in the tabs below. Req 1B Reg 28 Req 18 Reg 2A Compute the unit product cost. Assume that the company uses variable costing Unit product cost Req 2A Req 28 < Reg 1B Req 18 > Req 2B < Req 2A Req 28 > Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement S 0 0 0 0
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