FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Topic Video
Question

Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 59,000 to 99,000 units is given below:

 

Required:

1. Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below.

2. Assume that the company produces and sells 89,000 units during the year at a selling price of $11.10 per unit. Prepare a contribution format income statement for the year.

 
 
  Units Produced and Sold
  59,000 79,000 99,000
Total costs:      
Variable cost $230,100 not attempted not attempted
Fixed cost 490,000 not attempted not attempted
Total costs $720,100 $0 $0
Cost per unit:      
Variable cost not attempted not attempted not attempted
Fixed cost not attempted not attempted not attempted
Total cost per unit $0.00 $0.00 $0.00

 

 
 
Harris Company
Contribution Format Income Statement
Salesselected answer correct not attempted
Variable expensesselected answer correct not attempted
Contribution marginselected answer correct not attempted
Fixed expenseselected answer correct not attempted
Net operating incomeselected answer correct not attempted
Expert Solution
Check Mark
Step 1

Variable cost is the cost which depends on the level of production.

Fixed cost is the cost which is fixed and does not change with the change in the level of production.

Contribution is the difference between sales and variable cost.

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education