Question: For 2a, the textbook solution answer says the sales is 100,000 how do you get that? EXERCISE 6-6 Variable and Absorption Costing Unit Product Cost
For 2a, the textbook solution answer says the sales is 100,000 how do you get that?
EXERCISE 6-6 Variable and Absorption Costing Unit Product Cost u LO6-1, LO6-2 Lynch Company manufactures and sells a single product. The following costs were i the company's first year of operations: incurred durin Variable costs per unit Manufacturing: $6 $9 $3 $4 Direct materials Direct labor Variable selling and administrative.... Fixed costs per year: . $ $300,000 Fixed manufacturing overhead Fixed selling and administrative . .. . . .. . $190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of te company's product is $50 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year Assume that the company uses variable costing: a. 2. Compute the unit product cost. Prepare an income statement for the year. b
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