There was no finished goods inventory on July 1, 2008, for Royal Essentials. The company operated the

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There was no finished goods inventory on July 1, 2008, for Royal Essentials. The company operated the manufacturing facility at 100% of capacity during July. The following data summarize the results for Royal Essentials Inc. for July:

Sales (1,350 casesx $80 per case) $108,000 Production costs (1,500 cases): $18,000 Direct materials Direct labor 7,500 V

Using the information in the comprehensive problem prepare the Income Statement under Variable Costing. Before completing the income statement compute the variable cost per unit.

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Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Feb 08, 2013 02:41 AM

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There was no finished goods inventory on July 1, 2008, for Royal Essentials. The company operated the

Question:

Sales (1,350 casesx $80 per case) $108,000 Production costs (1,500 cases): $18,000 Direct materials Direct labor 7,500 Variable factory overhead 150 Fixed factory overhead 14,100 39,750 Variable selling expenses (1,350 cases x $16 21,600 percase)

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Computation of the Variable cost per unit Direct materia...View the full answer

Horngrens Financial and Managerial Accounting

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