Question: Greenville Corp has determined the following selling price and manufacturing

Greenville Corp. has determined the following selling price and manufacturing cost per unit based on normal production of 48,000 units per year:
Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28
Variable cost per unit: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . .. . $ 6
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16
Fixed cost per unit:
Fixed factory overhead per year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,000
Fixed selling and administrative expense per year . . . . . . . . . . . 60,000


January has no beginning inventories.

Required:
Prepare comparative income statements, including a comparative schedule of cost of goods sold, for each of these three months in 2013 under each of the following:
1. Absorption costing (include under- or overapplied overhead).
2. Variablecosting.


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  • CreatedMay 05, 2014
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