Question:(Financial Account) 10-49 Beta Company manufactures and sells large size tables to be used in the office of executives. One table is sold for $400. The selected data for the year 2020 is given below: Manufacturing expenses: Direct materials per unit: $120 Direct labor per unit: $60 Variable manufacturing overhead per unit: $20 Fixed manufacturing overhead per year: $600,000 Non-manufacturing expenses: Variable selling and administrative expense per unit: $40 Fixed selling and administrative expense per year: $900,000 Inventory information: Units in opening inventory: 0 units Units produced during 2020: 10,000 units Units sold during 2020: 9,000 units Units in closing inventory: 1,000 units a. Compute the cost of one table under variable costing. b. Prepare an income statement if variable costing is used. c. Compute the cost of one table under absorption costing. d. Prepare an income statement if absorption costing is used.

Question:(Financial Account) 10-49 Beta Company manufactures and sells large size tables to be used in the office of executives. One table is sold for $400. The selected data for the year 2020 is given below: Manufacturing expenses: Direct materials per unit: $120 Direct labor per unit: $60 Variable manufacturing overhead per unit: $20 Fixed manufacturing overhead per year: $600,000 Non-manufacturing expenses: Variable selling and administrative expense per unit: $40 Fixed selling and administrative expense per year: $900,000 Inventory information: Units in opening inventory: 0 units Units produced during 2020: 10,000 units Units sold during 2020: 9,000 units Units in closing inventory: 1,000 units a. Compute the cost of one table under variable costing. b. Prepare an income statement if variable costing is used. c. Compute the cost of one table under absorption costing. d. Prepare an income statement if absorption costing is used.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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