Eroner Co. manufacturers one type of product. Last year, the company recorded the following: Manufacturing cost...

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Eroner Co. manufacturers one type of product. Last year, the company recorded the following: Manufacturing cost per unit $112 Prime cost per unit $68 Conversion cost per unit $75 Total cost of goods sold $840,000 Sale price per unit $200 Total direct labour costs $400,000 Total selling and administrative expenses $480,000 Assume the company did not have any beginning or ending inventory for the year. (A) How many units were sold in the year? (B) What was the total cost of direct materials that were used in production? (C) What was the total cost of manufacturing overhead for the year? (D) What was the gross margin for the year? (E) What was the company's operating income for the year? (F) Describe the similarities and differences among the income statements of manufacturing firms, merchandising firms and service organizations? Eroner Co. manufacturers one type of product. Last year, the company recorded the following: Manufacturing cost per unit $112 Prime cost per unit $68 Conversion cost per unit $75 Total cost of goods sold $840,000 Sale price per unit $200 Total direct labour costs $400,000 Total selling and administrative expenses $480,000 Assume the company did not have any beginning or ending inventory for the year. (A) How many units were sold in the year? (B) What was the total cost of direct materials that were used in production? (C) What was the total cost of manufacturing overhead for the year? (D) What was the gross margin for the year? (E) What was the company's operating income for the year? (F) Describe the similarities and differences among the income statements of manufacturing firms, merchandising firms and service organizations?

Answer rating: 100% (QA)

A The number of units sold in the year can be calculated by dividing the total cost of goods sold COGS by the manufacturing cost per unit Here it woul... View the full answer