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Unformatted text preview: 2. ADC produces plastic that is used for injection molding applications. In 1999, the first year of operations, the company produced 4,000 tons of plastic and sold 3,500 tons. In 2000, the production was 3,000 tons, and 3,200 3,800 tons were sold. In each year, the selling price was $2,500 per ton. Variable manufacturing costs were $375 per ton, variable selling costs were $250 per ton, fixed manufacturing costs were $3,000,000 per year, and fixed administrative costs were $600,000 per year. a) prepare income statements for each year using absorption costing, and LIFO. b) prepare income statements for each year using throughput costing...
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This note was uploaded on 09/03/2008 for the course ORIE 350 taught by Professor Callister during the Spring '08 term at Cornell University (Engineering School).
- Spring '08