Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor 30 per unit 50 per unit Overhead costs Variable S Fixed 40 per unit $6,600,000 (per year) selling and administrative costs for the year. Variable $ 775,000 Fixed $5,000,000 Production and sales for the year 110,000 units Units produced Units sold 80,000 units sales price per unit $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 360 per unit

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor 30 per unit 50 per unit Overhead costs Variable S Fixed 40 per unit $6,600,000 (per year) selling and administrative costs for the year. Variable $ 775,000 Fixed $5,000,000 Production and sales for the year 110,000 units Units produced Units sold 80,000 units sales price per unit $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 360 per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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