Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Blue Sky Company reports the following costing data on its product for
its first year of operations. During this first year, the company produced
42,000 units and sold 34,000 units at a price of $130 per unit.
Production costs:
Direct materials per unit
Direct lavor per unit
Variable overhead per unit
Fixed overhead for the year
$ 54
$ 20
$6
$ 4,62,000
Selling and administrative cost:
Variable selling and administrative cost per unit
Fixed selling and administrative cost per year
Assume that this company uses variable costing.
$ 9
$ 1,10,000
a. Determine its unit product cost (Omit the '$' sign in your response.)
b. Prepare its income statement for the year under variable costing.
(Input all amounts as positive values except net loss which should be
indicated with a minus sign. Omit the '$' sign in your response.)
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Transcribed Image Text:Blue Sky Company reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit. Production costs: Direct materials per unit Direct lavor per unit Variable overhead per unit Fixed overhead for the year $ 54 $ 20 $6 $ 4,62,000 Selling and administrative cost: Variable selling and administrative cost per unit Fixed selling and administrative cost per year Assume that this company uses variable costing. $ 9 $ 1,10,000 a. Determine its unit product cost (Omit the '$' sign in your response.) b. Prepare its income statement for the year under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the '$' sign in your response.)
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