need this asap During the company\'s first year of operations, Perry, Inc. produ

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need this asap

During the company's first year of operations, Perry, Inc. produced 15,000 units during the year. Of these, 12,000 were sold for $50 each. Other Perry, Inc. data are shown below. Direct materials $8.00 per unit $6.00 per unit $2.00 per unit Direct labor Variable manufacturing overhead Variable selling and administrative costs $1.00 per unit Fixed manufacturing overhead Fixed selling and administrative costs $50,000 What is Perry, Inc's operating profit using variable costing and absorption $75,000 costing? Operating profit is $271,000 using variable costing and $286,000 using absorption costing. o o Operating profit is $396,000 using variable costing and $370,000 using absorption costing. Operating profit is $286,000 using variable costing and $271,000 using absorption costing. Operating profit is $271,000 using variable costing and $271,000 using absorption costing o

Explanation / Answer

Operating profit is $271,000 using variable costing and $286,000 using absorption costing.

Income Statement - Variable Costing Production 15000 Sales 12000 Per Unit Total Sales 50 600000 Direct Material 8.00 120000 Direct Labor 6.00 90000 Variable Manufacturing Overhead 2.00 30000 Toal manufactuiring Costs 16.00 240000 Less: Ending Inventory(3,000 x 16) 48000 Variable cost of goods sold 192000 Variable Selling and Admn. Expenses 1.00 12000 Total Varibale Costs 17.00 204000 Contribution Margin 33.00 396000 Fixed Expenses    Manufacturing costs 75000    Selling and Admin. Expenses 50000 Total Fixed Expenses 125000 Operating Profit 271000 Income Statement - Absorption Costing Production 15000 Sales 12000 Per Unit Total Sales 50 600000 Direct Material 8.00 120000 Direct Labor 6.00 90000 Variable Manufacturing Overhead 2.00 30000 Fixed Manufacturing Overhead 5.00 75000 Toal manufactuiring Overheads 21.00 315000 Less: Ending Inventory(3,000 x 21) 63000 Cos of goods sold 252000 Gross Profit 348000 Selling amd Adn. Expenses    Variable expenses 1.00 12000    Fixed Expenses 50000 Total Selling and Admn. Expenses 62000 Operating Profit 286000

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