Cost per unit of finished goods using Variable costing Number of units in

Cost per unit of finished goods using variable

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Determine the cost of goods sold using variable costing.
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3.Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Its cost and salesinformation for this year follows.Manufacturing costsDirect materials$40per unitDirect labor$60per unitOverhead costs for the yearVariable overhead$3,000,000Fixed overhead$7,000,000Selling and administrative costs for the yearVariable$770,000Fixed$4,250,000Production and sales for the yearUnits produced100,000unitsUnits sold70,000unitsSales price per unit$350per unit1.Prepare an income statement for the year using variable costing.
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2.Prepare an income statement for the year using absorption costing.
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  • Spring '14
  • JASWINDERK.BHANGAL
  • Managerial Accounting, gross margin, overhead costs, SIMS COMPANY, Rey Company

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