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Category > Accounting Posted 11 Aug 2017 My Price 8.00

Vamonos Company

2. The variable costing income statement for Vamonos Company for 2014 is as follows:

 

Sales (5,000 units) $100,000

Variable expenses:

Cost of goods sold $30,000

Selling (10% of sales) 10,000

40,000

Contribution margin $ 60,000

Fixed expenses:

Manufacturing overhead $24,000

Administrative 14,400

38,400

Operating income $ 21,600

 

Selected data for 2014 concerning the operations of the company are as follows:

 

Beginning inventory -0- units

Units produced 8,000 units

 

Manufacturing costs:

Direct labor $3.00 per unit

Direct materials 1.60 per unit

Variable overhead 1.40 per unit

 

Required:

Prepare an absorption costing income statement for 2014.

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 12:08 AM My Price 8.00

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