Question

Lassen Corporation 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 costs:
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 2016 under each of the following:
1. Absorption costing (include under- or overapplied overhead).
2. Variable costing.


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  • CreatedMarch 31, 2015
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