Accounting

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.

Question 5

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		$8.10
Direct labor		$2.65
Variable manufacturing overhead		$6.21
Variable selling and administrative expenses		$4.21
Fixed Costs per Year
Fixed manufacturing overhead		$252,582
Fixed selling and administrative expenses		$259,308

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.)

Manufacturing cost per unit

$16.96

Prepare a variable costing income statement for 2012. POLK COMPANY Income Statement For the Year Ended December 31, 2012 Variable Costing 09655919_0_10884001061188864_dropdown_571_resp_7 $2165400 09655919_0_10884001061188864_dropdown_621_resp_10 $1360192 09655919_0_10884001061188864_dropdown_671_resp_11 337642 1697834 09655919_0_10884001061188864_dropdown_751_resp_2 467566 09655919_0_10884001061188864_dropdown_801_resp_3 252582 09655919_0_10884001061188864_dropdown_851_resp_4 259308 511890 09655919_0_10884001061188864_dropdown_931_resp_6 $-44324 Warning Don't show me this message again for the assignment Ok    Cancel    Show Solution Show Answer Link to Text By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 3 of 3 used

(c) 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 $ I need this answer please Don't show me this message again for the assignment Ok    Cancel    Link to Text By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

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