Print by: CHRISTIAN COLLOR
ACC/561 - 42075079 / Assignment: Week 5 Assignment
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Question 5
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| Polk Company builds custom fishing lures for sporting
goods stores. In its first year of operations, 2012, the company incurred the
following costs.
| Variable Cost per Unit | |
|
| Direct materials | | $7.80 |
| Direct labor | | $2.55 |
| Variable manufacturing overhead | | $5.98 |
| Variable selling and administrative expenses | | $4.06 |
| | |
|
| Fixed Costs per Year | |
|
| Fixed manufacturing overhead | | $246,977 |
| Fixed selling and administrative expenses | | $249,704 |
Polk
Company sells the fishing lures for $26.00.
During 2012, the company sold 81,300 lures
and produced 96,100 lures.
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Question 5
Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit | | $
16.33
|
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Question 5
Prepare a variable costing income statement for 2012.
| POLK
COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable
Costing
|
|
Sales
| | | | $
2113800
|
|
Variable Cost of Goods Sold
| | $
1327629
| |
|
|
Variable Selling and Administrative Expenses
| |
330078
| |
|
| | | | |
1657707
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Contribution Margin
| | | |
456093
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Fixed Manufacturing Overhead
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246977
| |
|
|
Fixed Selling and Administrative Expenses
| |
249704
| |
|
| | | | |
496681
|
|
Net Income/(Loss)
| | | | $
(40588)
|
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Question 5
Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit | | $
18.90
|
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Question 5
Prepare an absorption costing income statement for 2012.
| POLK
COMPANY
Income Statement
For the Year Ended December 31, 2012
Absorption
Costing
|
|
Sales
| | | | $
2113800
|
|
Cost of Goods Sold
| | | |
1536570
|
|
Gross Profit
| | | |
577230
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Variable Selling and Administrative Expenses
| | $
330078
| |
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Fixed Selling and Administrative Expenses
| |
249704
| |
|
| | | | |
579782
|
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Net Income/(Loss)
| | | |
(2552)
|
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