FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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b. Prepare an income statement for the year.
Lynch Company
Absorption Costing Income Statement
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
Unit product cost
S
0
0
b. Prepare an income statement for the year.
Variable expenses:
Fixed expenses:
Lynch Company
Variable Costing Income Statement
$
0
0
0
0
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Transcribed Image Text:b. Prepare an income statement for the year. Lynch Company Absorption Costing Income Statement 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost S 0 0 b. Prepare an income statement for the year. Variable expenses: Fixed expenses: Lynch Company Variable Costing Income Statement $ 0 0 0 0
Lynch Company manufactures and sells a single product. The following costs were incurred during the
company's first year of operations:
Variable costs per unit:
Manufacturing:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative
Jumtox
Unit product cost
$6
$9
$3
$4
$ 300,000
$ 190,000
During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the
company's product is $50 per unit.
Required:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
expand button
Transcribed Image Text:Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative Jumtox Unit product cost $6 $9 $3 $4 $ 300,000 $ 190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost.
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