Test 2 - Managerial Online kareem sleiman.xls

Test 2 - Managerial Online kareem sleiman.xls - Managerial...

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Managerial Accounting - Test 2 (Chapters 5, 7, and 8) Exel Part - 50 points When completed, place back in drop box. Show all your work! Test 2 Problem 1 20 points Variable and Absorption costing and Income Statements We manufacture and sell Dinner Tables. Manufacturing costs: Fixed overhead $300,000 Variable overhead $5 per table Direct labor $10 per table Direct materials $20 per table Beginning inventory 0 Tables Tables produced 100,000 Tables Sold 95,000 Selling and administrative costs: Fixed $500,000 Variable $15 Per table sold The table sells for $100 The company uses absorption costing, calculate the manufacturing cost per unit. Absorption Manufacturing Costs Per Table Direct Materials $20 Direct Labor 10 Variable Overhead 5 Fixed Overhead 3 Product cost per unit $38
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Prepare an absorption costing income statement. Tables R US Income Statement For the Month Ended July 31, 20XX Absorption Costing Sales $9,500,000 Less:Cost Of Goods Sold (3,610,000) Gross Margin 5,890,000 Less: Selling expense ($500,000) Less: Administrative expense (1,425,000) Net income $3,965,000 The company uses variable costing, calculate the manufacturing cost per unit.
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