Paint More, LLC, has organized a new division to manufacture and sell specialty paint.
Paint 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
Instructions:
Submit an Excel document with each tab labeled by item number that demonstrates the following:
1. Compute the unit product cost under:
a. Absorption costing
b. Variable costing
2. Prepare an absorption costing income statement for September
3. Prepare a contribution format income statement for September using variable costing
12 years ago
Purchase the answer to view it
module_5.xlsx
Paint More LLC has organized a new division to manufacture and sell specialty paint. The
NOT RATED11 years ago
