Question

Refer to the information for Berting Inc. above. Assume that the selling price is $ 16 per unit. The following information pertains to Berting Inc. for last year:
Beginning inventory in units .......... —
Units produced ................... 25,000
Units sold .................. 23,600
Costs per unit:
Direct materials ................ $ 4.00
Direct labor ................. $ 1.60
Variable overhead ................ $ 0.75
Fixed overhead* ............... $ 3.80
Variable selling expenses ............ . $ 3.00
Fixed selling and administrative costs ...... $ 24,300
* Fixed overhead totals $ 95,000 per year.
Required:
1. Prepare an income statement using absorption costing.
2. Prepare an income statement using variable costing.


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  • CreatedSeptember 22, 2015
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