accounting 5

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

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

Times new roman, 12 point font