Question 4 Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Selling price Units produced Units sold Sales ▼(a) Assume the company uses normal costing and uses the budgeted volume of 9,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,400 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost Cost of goods sold Beginning inventory Add 2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.) Cost of goods sold Add 2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.) per unit Costs of goods manufactured Gross margin Net income $40 per shade $98,800 Volume variance $9 per shade $250,100 $97 per shade 10,400 shades 8,640 shades ASIAN WINDOWS Income Statement-Normal Costing For the Year Ended December 31, 2020 Less Selling and administrative expenses
Question 4 Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Selling price Units produced Units sold Sales ▼(a) Assume the company uses normal costing and uses the budgeted volume of 9,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,400 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Manufacturing cost Cost of goods sold Beginning inventory Add 2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.) Cost of goods sold Add 2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.) per unit Costs of goods manufactured Gross margin Net income $40 per shade $98,800 Volume variance $9 per shade $250,100 $97 per shade 10,400 shades 8,640 shades ASIAN WINDOWS Income Statement-Normal Costing For the Year Ended December 31, 2020 Less Selling and administrative expenses
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please do not give solution in image format thanku
Transcribed Image Text:Question 4
Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows:
Variable manufacturing costs
Fixed manufacturing costs
Variable selling and administrative expenses
Fixed selling and administrative expenses
Selling price
Units produced
Units sold
Manufacturing cost
Sales
- (a)
Assume the company uses normal costing and uses the budgeted volume of 9,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,400 units. The company
expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following:
1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)
Cost of goods sold
per unit
Cost of goods sold
Beginning inventory
Add v. Costs of goods manufactured
Add
$40 per shade
2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and
final answers to 0 decimal places.)
$98,800
2. Prepare a normal-costing income statement for 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places.)
Net income
Volume variance
$9 per shade
$250,100
$97 per shade
10,400 shades
8,640 shades
ASIAN WINDOWS
Income Statement-Normal Costing
For the Year Ended December 31, 2020
Gross margin
Less Selling and administrative expenses ✓
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education