Nesman Company, which has only one product, has provided the following data conc

Question

Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 119 Units in beginning inventory 370 Units produced 6,420 Units sold 6,330 Units in ending inventory 460 Variable costs per unit: Direct materials $ 46 Direct labor $ 21 Variable manufacturing overhead $ 2 Variable selling and administrative $ 18 Fixed costs: Fixed manufacturing overhead $ 141,240 Fixed selling and administrative $ 56,970 B. Prepare an income statement for the month using absorption costing.

Explanation / Answer

Sales 6330*119            753,270 Less: Cost of goods sold Beginning Inventory 370*91               33,670 Cost of goods manufactured 6420*91             584,220 Cost of goods available for sale             617,890 less:Closing Inventory 460*91               41,860            576,030 Gross Profit            177,240 Less: Sellingand administrative Expenses varaible Expenses 18*6330            113,940 Fixed Cost              56,970 Net Operating Income                6,330 manufacturing Cost per unit variable Cost per unit 46+21+2 = 69 Fixed Cost per unit (141240)/6420 =                22.00                     91

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.