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Category > Accounting Posted 30 Jul 2017 My Price 11.00

Felde Company

*E6-17 Felde Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2014, the company incurred the following  costs.

 

Variable Costs per Unit

Direct materials                                                                  $7.50

Direct labor                                                                           $2.45

Variable manufacturing overhead                                   $5.80 Variable selling and administrative expenses                                                                                $3.90

Fixed Costs per Year

Fixed manufacturing overhead                                  $225,000 Fixed selling and administrative expenses                                                                                          $240,100

Felde Company sells the fishing lures for $25. During 2014, the company sold 80,000 lures and produced 90,000 lures.

Instructions

(a)  Assuming the company uses variable costing, calculate Felde’s manufacturing cost per unit for 2014.

(b)  Prepare a variable costing income statement for 2014.

(c)   Assuming the company uses absorption costing, calculate Felde’s manufacturing cost per unit for 2014.

(d)  Prepare an absorption costing income statement for 2014.

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 08:07 PM My Price 11.00

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