Lynch Company manufactures and sells a single product. The following costs were

Question

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: Direct materials 15 Direct labor Variable manufacturing overhead 1 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $286,000 $196,000 During the year, the company produced 26,000 units and sold 22,000 units. The selling price of the company's product is $46 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. b. Prepare an income statement for the year 2. Assume that the company uses variable costing a. Compute the unit product cost. b. Prepare an income statement for the year Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2A Req 2B Compute the unit product cost. Assume that the company uses absorption costing

Explanation / Answer

1.a.

1.b.

Lynch Company

Absorption Costing Income Statement

2.a.

2.b.

Lynch Company

Variable Costing Income Statement

Direct materials $15 Direct labor 5 Variable manufacturing overhead 1 Fixed manufacturing overhead (286,000÷26,000) 11 Unit product cost $32

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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