Rikki Company developed the unit information shown to the right for January and February 2017, its first
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Question:
Rikki Company developed the unit information shown to the right for January and February 2017, its first two months of operations.
Fixed costs represent monthly amounts.
During January 12,000 units were produced and 9,000 units were sold.
During February 9,000 units were produced and 12,000 sold.
Prepare the January and February income statements based on variable cost and absorption cost (that is, four income statements total).
Also, perform a CVP analysis for Rikki Co and determine the break-even point in monthly unit sales, assuming the January and February results are representative.
Finally, calculate Rikki's margin of safety in February.
Per unit | total costs | |||
Sale price | $77.00 | |||
Variable costs | ||||
Direct materials | $8.00 | |||
Direct labour | $9.00 | |||
variable health ministry | $6.00 | |||
General and administrative salesperson | $7.00 | |||
Fixed selling, general and administrative expenses | $210,000.00 | |||
fixed MOH | $216,000.00 |
Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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