Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year....

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Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year. During this time, the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. Cost information for this period is shown in the following table: Production costs $2.00 per unit $.80 per unit $814,000 in total $481.000 in total Direct materials Direct labor Variable overhead Fixed overhead Nonproduction costs Variable selling and administrative Fixed selling and administrative $78,000 in total $210,000 in total a. Prepare Wrap-It's December 31 income statement for the current year under absorption costing. b. Prepare Wrap-It's December 31 income statement for the current year under variable costing. Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year. During this time, the company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. Cost information for this period is shown in the following table: Production costs $2.00 per unit $.80 per unit $814,000 in total $481.000 in total Direct materials Direct labor Variable overhead Fixed overhead Nonproduction costs Variable selling and administrative Fixed selling and administrative $78,000 in total $210,000 in total a. Prepare Wrap-It's December 31 income statement for the current year under absorption costing. b. Prepare Wrap-It's December 31 income statement for the current year under variable costing.

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a Wrap It Company Absorption Costing Income Statement Sales 310000 x 50 15500000 Cost of goods ... View the full answer