A partial list of sales and cost data is presented below for Lakeway Enterprises.

Sales (40,320 units)……………………………………….$1,209,600

Manufacturing costs for the units produced:

Prime cost……………………………………………………611,520

Variable factory overhead…………………………………...329,280

Fixed factory overhead………………………………………268,800

Operating expenses;

Variable selling expense……………………………………...161,280

Fixed selling expense…………………………………………100,800

Fixed administrative expense…………………………….......201,600

During the year, 47,040 units were produced, which is 2,240 more than the normal (denominator level) capacity. Over- or under-applied factory overhead is closed to cost of goods sold. There were 8,960 units in beginning inventory.

Required:

1. Determine, in units, ending finished goods inventory for the year.

2. What dollar amount, on a per unit basis, of manufacturing costs are assigned to each unit sold under:

3. Determine the dollar amount for the company’s volume variance.

4. Prepare a budgeted income statement for the year under absorption costing.

5. Prepare a budgeted income statement for the year under variable costing.

6. Prepare a schedule reconciling budgeted variable costing net income to absorption costing net income.

Answer rating: 100% (QA)

1 Inventory Op units 8960 production 47040 Sold 40320 Cl units 15680 2 Cost Per Unit P... View the full answer