Question

Joshua Company has determined the following selling price and manufacturing cost per unit based on normal production of 72,000 units per year:
Selling price per unit....................................... $ 22
Variable cost per unit:
Direct materials............................................. $ 4
Direct labor................................................. 4
Variable factory overhead.................................. 2
Variable cost per unit ...................................... $ 10
Fixed costs:
Fixed factory overhead per year ........................... $ 360,000
Fixed selling and administrative expense per year...... 48,000
October 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 2016 under each of the following:
1. Absorption costing (include under- or overapplied overhead).
2. Variable costing.


$1.99
Sales3
Views117
Comments0
  • CreatedMarch 31, 2015
  • Files Included
Post your question
5000