The following information is available for Preston Company for its first year of operations: Sales in units 5,000 8,000 Production in units Manufacturing costs: Direct labor Direct material $3 per unit 5 per unit 1 per unit si00,000 $30,000 $40 Variable overhead Fixed overhead Net income (absorption method) Sales price per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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COST OF GOODS SOLD IS 107,500. SHOW THE SOLUTION

 

The following information is available for Preston Company for its first year of operations:
Sales in units
5,000
8,000
Production in units
Manufacturing costs:
S3 per unit
5 per unit
1 per unit
$100,000
$30,000
Direct labor
Direct material
Variable overhead
Fixed overhead
Net income (absorption method)
Sales price per unit
$40
Transcribed Image Text:The following information is available for Preston Company for its first year of operations: Sales in units 5,000 8,000 Production in units Manufacturing costs: S3 per unit 5 per unit 1 per unit $100,000 $30,000 Direct labor Direct material Variable overhead Fixed overhead Net income (absorption method) Sales price per unit $40
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