Question 9 during 2007 its first year of operations

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Question 9During 2007, its first year of operations, ABC Company produced 20,000 units and sold10,000 units. During 2008, ABC Company produced 25,000 units and sold 30,000 units.The following information was taken from ABC's accounting records for 2007 and 2008:20072008Direct materials cost per unit....................$15$19Direct labor cost per unit........................$20$25Variable overhead cost per unit...................$10$12Variable selling & administrative cost per unit ...$5Fixed overhead (total cost).......................$100,000$180,000Fixed selling & administrative (total cost).......$120,000$140,000Assume the selling price of ABC Company's product was $80 per unit for both years.Calculate ABC Company's2008 net incomeusingvariable costing. Assume ABC Companyemploys aFIFO inventory cost flow assumption$5.:25
Question 10During 2007, its first year of operations, ABC Company produced 20,000 units and sold10,000 units. During 2008, ABC Company produced 25,000 units and sold 30,000 units.The following information was taken from ABC's accounting records for 2007 and 2008:20072008Direct materials cost per unit....................$15$19Direct labor cost per unit........................$20$25Variable overhead cost per unit...................$10$12Variable selling & administrative cost per unit ...$5Fixed overhead (total cost).......................$100,000$180,000Fixed selling & administrative (total cost).......$120,000$140,000Assume the selling price of ABC Company's product was $80 per unit for both years.Calculate ABC Company's2007 net incomeusingabsorption costing$5.
Question 11During 2007, its first year of operations, ABC Company produced 20,000 units and sold10,000 units. During 2008, ABC Company produced 25,000 units and sold 30,000 units.The following information was taken from ABC's accounting records for 2007 and 2008:20072008Direct materials cost per unit....................$15$19Direct labor cost per unit........................$20$25Variable overhead cost per unit...................$10$12Variable selling & administrative cost per unit ...$5Fixed overhead (total cost).......................$100,000$180,000Fixed selling & administrative (total cost).......$120,000$140,000Assume the selling price of ABC Company's product was $80 per unit for both years.Calculate ABC Company's2008 cost of goods soldusingabsorption costing. Assume ABCCompany employs aLIFO inventory cost flow assumption$5.:
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Term
Spring
Professor
SMITH
Tags
Assembly department

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