Variable Costing CT5
dinkaufaPaint 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:
- Compute the unit product cost under:
- Absorption costing
- Variable costing
- Prepare an absorption costing income statement for September
- Prepare a contribution format income statement for September using variable costing
10 years ago
10
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variable_costing_ct5.xlsx
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- absorbtion_costing_income_statement_for_septemberdone.docx
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- vc5.docx
- vc5.xls
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- paint_more_llc__3_2016_solutions.xlsx
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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.
NOT RATED11 years agoPaint More LLC has organized a new division to manufacture and sell specialty paint. The
NOT RATED10 years ago
