Lynch Company manufactures and sells a single product. The following costs were
ID: 2419667 • Letter: L
Question
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company’s product is $48 per unit.
Prepare an income statement for the year.
Prepare an income statement for the year.
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:
Explanation / Answer
Answer: (1) Absorption Costing
(a)
Unit Product Cost is $33 per Unit.
(b)
Income Statement
Answer: 2 Variable Costing
(a)
Unit Product Cost is $21 per Unit.
(b)
Income Statement
Reconciliation
Units Produced 24000 Units Sold 20000 Closing Stock 4000Related Questions
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