Management assigned you the duty of producing financial reports that accurately apply and interpret data for a
Question:
Management assigned you the duty of producing financial reports that accurately apply and interpret data for a variety of their business activities using an appropriate technique (absorption costing and variable costing).
You have gathered the following information for the report.
Variable costs per unit:
Manufacturing:
Direct materials .......................................... $6
Direct labor............................................... $9
Variable manufacturing overhead ............... $3
Variable selling and administrative ............. $4
Fixed costs per year:
Fixed manufacturing overhead....................... $300,000
Fixed selling and administrative ..................... $190,000
During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company’s product is $50 per unit.
In the form of a report, answer the following criteria. Preparing basic financial accounts in compliance with accounting principles, conventions, and standards for unincorporated and small commercial organizations
- Critically evaluate the financial accounts to assess organizational performance using a variety of criteria and standards.
- Produce necessary modifications to financial statements based on a trial balance.
- Prepare financial accounts for sole traders, partnerships, and not-for-profit organizations using a trial balance to comply with accounting principles, conventions, and standards.
Business Research Methods
ISBN: 978-0073521503
12th edition
Authors: Donald R. Cooper, Pamela S. Schindler