Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 18 Jan 2018 My Price 8.00

Stonehenge Inc

Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown below

Production costs:

Direct labor

$.30 per unit

Direct materials

$1.80 per unit

Variable overhead

$495,000

Fixed overhead

$450,000

Non-production costs:

Variable selling expense

$18,000

Fixed administrative expenses

$53,000

Required:

a) Prepare Stonehenge"s income statement under absorption costing.

b) Prepare Stonehenge"s income statement under variable costing.

c) Reconcile the two net incomes.

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Jan 2018 11:01 PM My Price 8.00

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