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Vinson Co. manufactures and sells one product. Assume the selling price for each item is...

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Accounting

Vinson Co. manufactures and sells one product. Assume the selling price for each item is $200/per unit. The following information pertains to the companys first two years of operation:

Variable Costs Per Unit:

Manufacturing:

Direct Materials $32/unit

Direct Labor $20/unit

Variable Manufacturing Overhead $4/unit

Variable Selling and Administrative $3/unit

Fixed Costs:

Fixed Manufacturing Overhead $660,000

Fixed Selling and Administrative $120,000

Additionally, Vinson Company provides you with the following inventory flow information in terms of units for YEAR 1 & YEAR 2:

YEAR 1 YEAR 2

Beginning Inventory (units) 0 20,000

Units Produced 100,000 75,000

Units Sold 80,000 90,000

Ending Inventory (units) 20,000 5,000

FOR YEAR 1 PLEASE ANSWER THE FOLLOWING QUESTIONS:

Question 1: Using the following table, calculate Vinsons Unit Product Cost/Unit using the Variable Cost Method and Absorption Cost Method.

- Using the Variable Cost Method----Compute Cost Goods Sold:

-Prepare the Companys YEAR 1 Contribution Margin Income Statement---properly label and show all amounts

-Using the Absorption Cost Method----Compute Cost Goods Sold:

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