Zola Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials Fixed costs per year: Direct labor $ 18 $ 281,250 Fixed selling and administrative expenses $ 300,000 $ 87,500 Fixed manufacturing overhead The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 22,500 units and sold 18,000 units. The selling price of the company's product is $66.50 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Prepare an income statement for the year. Assume the company uses super-variable costing. Zola Company Super-Variable Costing Income Statement $ 1,000 Sales Variable cost of goods sold 1,000 Contribution margin Fixed expenses:
Zola Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials Fixed costs per year: Direct labor $ 18 $ 281,250 Fixed selling and administrative expenses $ 300,000 $ 87,500 Fixed manufacturing overhead The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Zola produced 22,500 units and sold 18,000 units. The selling price of the company's product is $66.50 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Prepare an income statement for the year. Assume the company uses super-variable costing. Zola Company Super-Variable Costing Income Statement $ 1,000 Sales Variable cost of goods sold 1,000 Contribution margin Fixed expenses:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 183.
Transcribed Image Text:Zola Company manufactures and sells one product. The following information pertains to the company's first year of operations:
Variable cost per unit:
Direct materials
Fixed costs per year:
Direct labor
$ 18
$ 281,250
Fixed selling and administrative expenses
$ 300,000
$ 87,500
Fixed manufacturing overhead
The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first
year of operations, Zola produced 22,500 units and sold 18,000 units. The selling price of the company's product is $66.50 per unit.
Required:
1. Assume the company uses super-variable costing:
a. Compute the unit product cost for the year.
b. Prepare an income statement for the year.
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
Prepare an income statement for the year. Assume the company uses super-variable costing.
Zola Company
Super-Variable Costing Income Statement
$
1,000
Sales
Variable cost of goods sold
1,000
Contribution margin
Fixed expenses:
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