Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the year
Question:
Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the year ended December 31, 2022. The company had no beginning inventory. In 2022, it produced 1,500 units but sold only 1,200 units. The unit selling price was $4,500. Costs and expenses were as follows:
Instructions
a. Calculate the manufacturing cost of one unit of product using variable costing.
b. Prepare a 2022 income statement for Wu Company using variable costing.
c. Calculate the manufacturing cost of one unit of product using throughput costing.
d. Prepare a 2022 income statement for Wu Company using throughput costing.
e. Reconcile the difference between variable-costing and throughput-costing net income.
Step by Step Answer:
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119731825
6th Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso