4. The unit product cost at a production level of 420,000 units would be
calculated as follows:
Direct materials ... $57.20
Direct labor ... 15.00
Variable manufacturing overhead ... 5.00
Fixed manufacturing overhead ($6,888,000 ÷ 420,000 units).. 16.40
Unit product cost ... $93.60
The absorption costing income statement would be:
Sales (400,000 units × $120 per unit) ... $48,000,000
Cost of goods sold:
Beginning inventory... $ 0
Add cost of goods manufactured
(420,000 units × $93.60 per unit) ... 39,312,000
Goods available for sale ... 39,312,000
Less ending inventory
(20,000 units × $93.60 per unit)... 1,872,000 37,440,000
Gross margin... 10,560,000
Less selling and administrative expenses:
Variable selling and administrative
(400,000 units × $10 per unit)... 4,000,000
Fixed selling and administrative ... 4,560,000 8,560,000
Net operating income... $ 2,000,000
© The McGraw-Hill Companies, Inc., 2006. All rights reserved.
Solutions Manual, Chapter 7 389
Case 7-19 (continued)
Bạn đang xem 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH07 VARIBLE COSSTING TOOL FOR MANAGEMENT