Question

Total Glass Company repairs chips in car windshields. The company incurred the following operating costs for the month of July 2014:
Salaries and wages ............$ 11,000
Windshield repair materials ......... 4,800
Depreciation on truck ............ 550
Depreciation on building and equipment .... 1,200
Supplies used ................ 300
Utilities ................. 2,620
Total Glass Company earned $ 23,000 in revenues for the month of July by repairing 200 windshields. All costs shown are considered to be directly related to the repair service.

Requirements
1. Prepare an income statement for the month of July.
2. Compute the per unit cost of repairing one windshield.
3. The manager of Total Glass Company must keep unit operating cost below $ 70 per windshield in order to get his bonus. Did he meet the goal?



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  • CreatedJanuary 16, 2015
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