Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 6-6(algo) variable and absorption costing

Exercise 6-6(Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, [06-2]...

80.2K

Verified Solution

Question

Accounting

Exercise 6-6(Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1,
[06-2]
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials $10
Direct labor $4
Variable manufacturing overhead $2
Variable selling and administrative $2
Fixed costs per year:
Fixed manufacturing overhead $374,000
Fixed selling and administrative $284,0
During the year, the company produced 34,000 units and sold 26,000 unlts. The selling price of the company's product is $44 per unit.
Required:
Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an Income statement for the year.
Assume that the company uses varlable costing:
a. Compute the unit product cost.
b. Prepare an Income statement for the year. ANSWER ALL PARTS THANK YOU
image

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

Basic Math
1.2K views

Savanah along with the help of some friends is trying to gather some data abou...

Finance
1.2K views

In mid-2009, Rite Aid had CCC-rated, 66-year bonds outstanding with a yield to maturity of 17.3...

Biology
1.2K views

I need a 3-4 page research paper on the following topic: (The class is healthcare law...

Psychology
1.2K views

Briefly outline the key events in Siddhartha’s life before he became known as the Buddha. What...

Physics
1.2K views

From t = 0 to t = 3.90 min, a man stands still, and from t...

Accounting
1.2K views

One division produces operating profit of $ 500,000 and the second division produces operating profit...

Geometry
1.2K views

In a right triangle the side adjacent to angle has length 3 79 meters and...

Basic Math
1.2K views

Find the bearing from O to A N W A 82 E The bearing from...

Statistics
1.2K views

Determine the critical value s for a left tailed hypothesis test for a mean with...

Algebra
1.2K views

5 Which value below is a solution to the inequality 3x 2 2x 4 Select...

Accounting
1.2K views

50. which of the following is an operating budget? a.cash budget b. sales budget c.budgeted...

Accounting
1.2K views

View Policies Current Attempt in Progress Oriole, Inc., is considering investing in a new production...