Ron Williams Manufacturing began operations this year. The company can make up to 30,000 un. operations: Sales price Units produced and sold $79 per ufit 30,000 $21 per unit $24 per unit S135,000 Direct materials Direct labor Fixed manufacturing overhead costs Variable manufacturing overhead Fixed marketing and administrative costs S117,000 Variable marketing and administrative $12 per unit $5 per unit costs
Ron Williams Manufacturing began operations this year. The company can make up to 30,000 un. operations: Sales price Units produced and sold $79 per ufit 30,000 $21 per unit $24 per unit S135,000 Direct materials Direct labor Fixed manufacturing overhead costs Variable manufacturing overhead Fixed marketing and administrative costs S117,000 Variable marketing and administrative $12 per unit $5 per unit costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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uestion 1
Ron Williams Manufacturing began operations this year. The company can make up to 30,000 units
operations:
Sales price
Units produced and sold
S79 per uit
30,000
S21 per unit
$24 per unit
$135,000
Direct materials
Direct labor
Fixed manufacturing overhead costs
Variable manufacturing overhead
Fixed marketing and administrative costs
Variable marketing and administrative
S12 per unit
S117,000
$5 per unit
costs
Required: Prepare an income statement for the company using absorption costing.
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