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 ...................25,000Units sold ..................23,600Costs per unit: Direct materials ................$ 4.00Direct labor .................$ 1.60Variable overhead ................$ 0.75Fixed overhead* ...............$ 3.80Variable selling expenses .............$ 3.00Fixed selling and administrative

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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.
Related Book For answer-question

Cornerstones of Financial and Managerial Accounting

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

ISBN: 978-1111879044