A1 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows:2$4203 Selling price per fireplace4 Manufacturing costs:Variable per unit produced:6.Direct materials$135Direct labor$438.$37Variable manufacturing overheadFixed manufacturing overhead per year10 Selling and administrative expenses:11 Variable per unit sold12 Fixed per year9.$210,000$45$190,0001314 Units in beginning inventory15 Units produced during the year16 Units sold during the year5,0004,5001718 Use the data to answer the following.19A20 1. Assume the company uses variable costing:2122 Compute the unit product cost for one fireplace2324 Prepare a contribution margin income statement for the year2526 Sales27 Variable expenses:28 Variable cost of goods sold29 Variable selling and administrative expenses30 Contribution margin31 Fixed expenses:32 Fixed manufacturing overhead33 Fixed selling and administrative expenses34 Net operating income3536 Compute the number of fireplaces required to breakeven3738 2. Assume the company uses absorption costing:3940 Compute the unit product cost for one fireplace4142 Prepare an income statement for the year4344 Sales45 Cost of goods sold46 Gross margin47 Selling and administrative expenses48 Net operating income49

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Description: A1 Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follows:2$4203 Selling price per fireplace4 Manufacturing costs:Variable per unit produced:6.Direct materials$135Direct labor$438.$37Variable manufacturing overhe

The income statement can be prepared using various approaches as variable costing and absorption…

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A Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follo $420 - Selling price per fireplace - Manufacturing costs: Variable per unit produced: Direct materials $135 Direct labor $43 $37 Variable manufacturing overhead eFixed manufacturing overhead per year 0 Selling and administrative expenses: 1 Variable per unit sold 2 Fixed per year 13 14 Units in beginning inventory 15 Units produced during the year 16 Units sold during the year 17 18 Use the data to answer the following. $210,000 $45 $190,000 5,000 4,500 19

A Addison, Inc. makes a single product, an indoor fireplace. Data for last year is as follo $420 - Selling price per fireplace - Manufacturing costs: Variable per unit produced: Direct materials $135 Direct labor $43 $37 Variable manufacturing overhead eFixed manufacturing overhead per year 0 Selling and administrative expenses: 1 Variable per unit sold 2 Fixed per year 13 14 Units in beginning inventory 15 Units produced during the year 16 Units sold during the year 17 18 Use the data to answer the following. $210,000 $45 $190,000 5,000 4,500 19

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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