Complete Exercise 19-17 in the Wiley Plus software. After completing the assignment , write a paper of no more than 350 words in which you respond to the following questions:
· In this case, would it be better to use the variable or absorption costing method, and why?
· What are the benefits of the two methods?
· Which method would lead to the best decision when a competitor is submitting a lower bid for your product?
Click the Assignment Files tab to submit your assignment. The paper does not have to be in APA format.
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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.
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Variable Cost per Unit
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Direct materials
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$8.10
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Direct labor
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$2.65
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Variable manufacturing overhead
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$6.21
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Variable selling and administrative expenses
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$4.21
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Fixed Costs per Year
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Fixed manufacturing overhead
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$252,582
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Fixed selling and administrative expenses
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$259,308
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Polk Company sells the fishing lures for $27.00. During 2012, the company sold 80,200 lures and produced 94,600 lures.
Exercise 19-7- is question 5.
Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012.
(Round answer to 2 decimal places, e.g.10.50.)
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Manufacturing cost per unit
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$http://edugen.wiley.com/edugen/art2/common/pixel.gif 16.96
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Prepare a variable costing income statement for 2012.
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POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
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$http://edugen.wiley.com/edugen/art2/common/pixel.gif 2165400
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_621_resp_10
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$http://edugen.wiley.com/edugen/art2/common/pixel.gif 1360192
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_671_resp_11
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 337642
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 1697834
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_751_resp_2
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 467566
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_801_resp_3
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 252582
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_851_resp_4
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 259308
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 511890
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http://edugen.wiley.com/edugen/art2/common/pixel.gif 09655919_0_10884001061188864_dropdown_931_resp_6
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$http://edugen.wiley.com/edugen/art2/common/pixel.gif -44324
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(c)
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http://edugen.wiley.com/edugen/art2/common/pixel.gif
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Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2012.
(Round answer to 2 decimal places, e.g.10.50.)
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Manufacturing cost per unit
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$http://edugen.wiley.com/edugen/art2/common/pixel.gif
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I need this answer please
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Sales
2165400
09655919_0_108
Variable Cost of Goods Sold
1360192
09655919_0_108
Variable Selling and Administrative Expenses
337642
1697834
09655919_0_108
Contribution Margin
467566
09655919_0_108
Fixed Manufacturing Overhead
252582
09655919_0_108
Fixed Selling and Administrative Expenses
259308
511890
09655919_0_108
Net Income/(Loss)
-44324
16.96
09655919_0_108