Paint More LLC has organized a new division
AlvinPaint More LLC has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below:
Manufacturing costs: | ||
Variable costs per unit: | ||
Direct materials | $12 | |
Variable manufacturing overhead | $1 | |
Fixed manufacturing overhead costs (total) | $100,000 | |
Selling and administrative costs: | ||
Variable | 7% of sales | |
Fixed (total) | $31,000 | |
Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Units produced 5,000
Units sold 4,000
1. Compute the unit product cost under:
1. Absorption costing
2. Variable costing
2. Prepare an absorption costing income statement for September
3. Prepare a contribution format income statement for September using variable costing
9 years ago
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paint_llc.xls
Paint More, LLC, has organized a new division to manufacture and sell specialty paint.
NOT RATED11 years agoPaint More LLC has organized a new division to manufacture and sell specialty paint. The
NOT RATED10 years ago
