Question

Refer to Exercise. In Exercise, Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21 per unit
Fixed manufacturing overhead costs . . . . . . . . . . . . . . . . $135,000
Sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $79 per unit
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . $12 per unit
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24 per unit
Fixed marketing and administrative costs . . . . . . . . . . . . $117,000
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Variable marketing and administrative costs . . . . . . . . . . $5 per unit

Required
Prepare:
a. A gross margin income statement.
b. A contribution margin income statement.



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  • CreatedDecember 18, 2013
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