During 2013, Life works Inc. Had $200,000 in sales commission, $120,000 in administrative costs of which $ 20,000 fixed. Their selling price per unit was $40. direct materials was $4. direct labor $8. and variable overhead was $3. fixed overhead amounted to $600,000. Prepare an income statement under absorption and variable costing. if : 1. Sold unit 60,000 and produced unit 60,000 2. Sold unit 40,000 and produced unit 60,000 3. Sold unit 80,000 and produced unit 60,000

During 2013, Life works Inc. Had $200,000 in sales commission, $120,000 in administrative costs of which $ 20,000 fixed. Their selling price per unit was $40. direct materials was $4. direct labor $8. and variable overhead was $3. fixed overhead amounted to $600,000. Prepare an income statement under absorption and variable costing. if : 1. Sold unit 60,000 and produced unit 60,000 2. Sold unit 40,000 and produced unit 60,000 3. Sold unit 80,000 and produced unit 60,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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