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Splish Products manufactures and sells a variety of camping products. Recently the compa deluxe portable cooking unit. Cost and sales data for the first month of operation are show Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead 0 units 10,000 8,400 $97,200

Splish Products manufactures and sells a variety of camping products. Recently the compa deluxe portable cooking unit. Cost and sales data for the first month of operation are show Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead 0 units 10,000 8,400 $97,200

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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Splish Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable (a) Question 2 of 3 (a) < 0 units > Manufacturing cost $ 10,000 The portable cooking unit sells for $111.00. Management is interested in the opening month's results and has asked for an income statement. 8,400 $97,200 $4.00 per unit $9.00 per unit $26.00 per unit $194,100 $3.00 per unit sold Assume the company uses normal-absorption costing and uses the budgeted volume of 13,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,000 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 manufacturing cost to 2 decimal places, e.g. 15.25.) per unit 2. Prepare a normal-absorption-costing income statement for the first month of operation. SplishProducts Income Statement-Normal-Absorption Costingg For the first month of operations $
Transcribed Image Text:Splish Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable (a) Question 2 of 3 (a) < 0 units > Manufacturing cost $ 10,000 The portable cooking unit sells for $111.00. Management is interested in the opening month's results and has asked for an income statement. 8,400 $97,200 $4.00 per unit $9.00 per unit $26.00 per unit $194,100 $3.00 per unit sold Assume the company uses normal-absorption costing and uses the budgeted volume of 13,500 units to allocate the fixed overhead rate rather than the actual production volume of 10,000 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 manufacturing cost to 2 decimal places, e.g. 15.25.) per unit 2. Prepare a normal-absorption-costing income statement for the first month of operation. SplishProducts Income Statement-Normal-Absorption Costingg For the first month of operations $
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