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SP 19 Serial Problem Business Solutions (Static) LO P2 Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2021. The workstations' manufacturing costs include the following. Direct materials $ 800 per unit Direct labor $ 400 per unit Variable overhead $ 100 per unit Fixed overhead $ 24,000 per year Selling and administrative expenses for these workstations follow. $ 50 per unit $ 4,000 per year Variable Fixed Santana is considering how many workstations to produce in 2021. She is confident that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Reviewing results from parts 1 and 2, which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the following income statements using absorption costing. Product cost per unit-Absorption costing Direct materials per unit Direct labor per unit Production volume 300 320 workstations workstations $ 800 $ 400 800 400

SP 19 Serial Problem Business Solutions (Static) LO P2 Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2021. The workstations' manufacturing costs include the following. Direct materials $ 800 per unit Direct labor $ 400 per unit Variable overhead $ 100 per unit Fixed overhead $ 24,000 per year Selling and administrative expenses for these workstations follow. $ 50 per unit $ 4,000 per year Variable Fixed Santana is considering how many workstations to produce in 2021. She is confident that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Reviewing results from parts 1 and 2, which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the following income statements using absorption costing. Product cost per unit-Absorption costing Direct materials per unit Direct labor per unit Production volume 300 320 workstations workstations $ 800 $ 400 800 400

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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SP 19 Serial Problem Business Solutions (Static) LO P2 Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2021. The workstations manufacturing costs include the following. Direct materials Direct labor $800 per unit $400 per unit $ 100 per unit Variable overhead Fixed overhead $ 24,000 per year Selling and administrative expenses for these workstations follow. Variable Fixed $ 50 per unit $4,000 per year Santana is considering how many workstations to produce in 2021. She is confident that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Reviewing results from parts 1 and 2, which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold? Complete this question by entering Required 1 Required 2 Required 3 Complete the following income statements using absorption costing. Product cost per unit - Absorption costing Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit answers in the tabs below. Product cost per unit - Absorption costing Number of workstations sold Total cost of goods sold BUSINESS SOLUTIONS Production volume 300 320 workstations workstations $ $ 800 400 100 1,300 S 800 400 100 1,300 < Prev 1 of 1 # Next >
Transcribed Image Text:SP 19 Serial Problem Business Solutions (Static) LO P2 Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2021. The workstations manufacturing costs include the following. Direct materials Direct labor $800 per unit $400 per unit $ 100 per unit Variable overhead Fixed overhead $ 24,000 per year Selling and administrative expenses for these workstations follow. Variable Fixed $ 50 per unit $4,000 per year Santana is considering how many workstations to produce in 2021. She is confident that she will be able to sell any workstations in her 2021 ending inventory during 2022. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing. 3. Reviewing results from parts 1 and 2, which costing method, absorption or variable, yields the higher income when 320 workstations are produced and 300 are sold? Complete this question by entering Required 1 Required 2 Required 3 Complete the following income statements using absorption costing. Product cost per unit - Absorption costing Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit answers in the tabs below. Product cost per unit - Absorption costing Number of workstations sold Total cost of goods sold BUSINESS SOLUTIONS Production volume 300 320 workstations workstations $ $ 800 400 100 1,300 S 800 400 100 1,300 < Prev 1 of 1 # Next >
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