FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information pertains to the JAG Corporation for the month of July
100,000 units were sold in July at a selling price per unit of $24.
The standard unit manufacturing costs for the month were:
VCU
$12
FCU
4
Total Mfg cost per unit
$16
Selling and administrative costs for the month were:
$5
VCU
Total fixed costs
$400,000
The unit rate for fixed manufacturing costs is a predetermined rate based on a capacity level of 150,000 units
per month. Production for July was 45.000 units less than sales. Ending inventory on June 30 consisted of
80,000 units. Actual fixed manufacturing costs were $600,000.
Instructions:
Prepare an absorption costing income statement that includes the calculations of cost of goods sold and the
adjustment for any PVV.
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Transcribed Image Text:The following information pertains to the JAG Corporation for the month of July 100,000 units were sold in July at a selling price per unit of $24. The standard unit manufacturing costs for the month were: VCU $12 FCU 4 Total Mfg cost per unit $16 Selling and administrative costs for the month were: $5 VCU Total fixed costs $400,000 The unit rate for fixed manufacturing costs is a predetermined rate based on a capacity level of 150,000 units per month. Production for July was 45.000 units less than sales. Ending inventory on June 30 consisted of 80,000 units. Actual fixed manufacturing costs were $600,000. Instructions: Prepare an absorption costing income statement that includes the calculations of cost of goods sold and the adjustment for any PVV.
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