During 2022, Blue Spruce Corp. produced 43,120 units and sold 43,120 for $14.00 per unit....
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During 2022, Blue Spruce Corp. produced 43,120 units and sold 43,120 for $14.00 per unit. Variable manufacturing costs were $5.00 per unit. Annual fixed manufacturing overhead was $86,240 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $21,560. Suppose the accountant for Blue SpruceCorp. uses normal-absorption costing and uses the budgeted volume of 53,900 units to allocate the fixed overhead rather than the actual production volume of 43,120 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.
(a)
Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 5.25.)
Manufacturing cost
$enter the manufacturing cost per unit in dollars rounded to 2 decimal places
per unit
Prepare a normal-absorption-costing income statement for the first year of operation. Blue SpruceCorp. Income Statement-Normal-Absorption Costing For the Year Ended December 31, 2022 4 $ $ : $
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