Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 06 Aug 2017 My Price 11.00

Paint More, LLC

Cost of Production

Paint More, LLC, has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below:

Manufacturing costs:

Variable costs per unit:
 

Direct materials

$12

Variable manufacturing overhead

$1

Fixed manufacturing overhead costs (total)

$100,000

Selling and administrative costs:

  
 

Variable

7% of sales

Fixed (total)

$31,000

Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Units produced 5,000
Units sold 4,000
Instructions:
Submit an Excel document with each tab labeled by item number that demonstrates the following:

  1. Compute the unit product cost under:
    1. Absorption costing
    2. Variable costing
  2. Prepare an absorption costing income statement for September
  3. Prepare a contribution format income statement for September using variable costing

Provide your answers in a clearly organized Excel spreadsheet. Check spelling and formatting for readability. Document your sources.

Answers

Maurice Tutor
(5)
Status NEW Posted 06 Aug 2017 03:08 PM My Price 11.00

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