wesltley widgets, Inc produces and sells a unique type ofwidget. The company has just...

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Accounting

wesltley widgets, Inc produces and sells a unique type ofwidget. The company has just opened a new plant to manufacture thewidgets and the following cost and revenue data have been providedfor the first month of the plant's operation .Beginning inventory,0 units Units produced 40,000 units units sold 35,000 selling perunit $60 per unit selling and administrative expenses: variablesper unit $2 per unit fixed(total) $500,000 Manufacturing cost:Direct materials cost per unit $14 per unit Direct labor cost perunit $7 per unit Variable manufacturing overhead cost per unit $2per unit fixed manufacturing overhead cost (total) $600,000.
Assume the the company uses absorption costing
A) determine the product cost.
Direct materials per unit=
Direct labor per unit=
Variable manufacturing overhead per unit=
fixed manufacturing overhead per unit=
total product cost per unit=
B) prepare an income statement for the month
Sales (35,000 units)=
less cost of goods sold=
gross profit margin=
less: Variable selling and administrative=
less: fixed selling and administrative =
net income=
Assume that company uses the contribution approach with variablecosting.
Determine the product cost.
a) total product cost
B) prepare an income statement for the month.

Answer & Explanation Solved by verified expert

4.0 Ratings (540 Votes)

Given Data Beginning inventory 0 Units produced 40000 Units Sold 35000 Selling Price Per Unit 60 Selling and Administrative ExpenseVariable 2 Selling and Administrative ExpenseFixed 500000 Direct Material 14 Direct Labour 7 Manufacturing OH Variable 2 Fixed See Answer

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In: Accountingwesltley widgets, Inc produces and sells a unique type ofwidget. The company has just opened...wesltley widgets, Inc produces and sells a unique type ofwidget. The company has just opened a new plant to manufacture thewidgets and the following cost and revenue data have been providedfor the first month of the plant's operation .Beginning inventory,0 units Units produced 40,000 units units sold 35,000 selling perunit $60 per unit selling and administrative expenses: variablesper unit $2 per unit fixed(total) $500,000 Manufacturing cost:Direct materials cost per unit $14 per unit Direct labor cost perunit $7 per unit Variable manufacturing overhead cost per unit $2per unit fixed manufacturing overhead cost (total) $600,000.Assume the the company uses absorption costingA) determine the product cost.Direct materials per unit=Direct labor per unit=Variable manufacturing overhead per unit=fixed manufacturing overhead per unit=total product cost per unit=B) prepare an income statement for the monthSales (35,000 units)=less cost of goods sold=gross profit margin=less: Variable selling and administrative=less: fixed selling and administrative =net income=Assume that company uses the contribution approach with variablecosting.Determine the product cost.a) total product costB) prepare an income statement for the month.