Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 4-9 (algo) variable and absorption costin

Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2,...

90.2K

Verified Solution

Question

Accounting

Exercise 4-9 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2, LO4-3] Walsh Company manufactures and sells one product. The following information pertains to each of the companys first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labor $ 11 Variable manufacturing overhead $ 5 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the companys product is $52 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1 and Year 2. b. Prepare an income statement for Year 1 and Year 2. 3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

According to a Gallup poll about gun ownership, in the year 2016, 270 out of 600...

Biology
1.2K views

64. Computationally predicting protein structure from a sequence may involve a “homology modeling” approach and/or “ab initio”...

Physics
1.2K views

7.15 Channel equalization. We suppose that u1, . . . , um is a signal (time...

Physics
1.2K views

Three equal positive point charges of magnitude Q = 10.00μ C are located at three corners...

Advance Math
1.2K views

Use Laplace's method to solve A mass of 1 slug is attached to a spring whose...

Accounting
1.2K views

Sales price P15 per unit Variable costs: SG&A P2 per unit Production P4 per unit Fixed costs (total cost...

Physics
1.2K views

A 250 V 12 000 W 3000 rpm de shunt motor has Rf Ra and...

Physics
1.2K views

d any one of i ii and iii 0 Two particles of equal charges after...

Geometry
1.2K views

what is the equation for the parabola with a focus f 0 16 7

Geometry
1.2K views

Questions 11 and 12 refer to information Spring 1 Spring 2 Spring 3 Spring 4...

Calculus
1.2K views

Find one function from the family that constitutes the indefinite integral for s 6x sec...

Accounting
1.2K views

Babson Corporation specializes in the construction of commercial and industrial buildings. On April 5, 201,...