Calculate the product cost and prepare an income statement under variable costing. Bob's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs: E8.19 (LO 1 Variable cost per unit Direct materials $6.50 Direct labour 2.75 Variable manufacturing overhead 5.75 Variable selling and administrative expenses 3.90 Fixed costs for year Fixed manufacturing overhead $285,000 Fixed selling and administrative expenses 240,100 Bob's Company sells the fishing lures for $25. During 2022, the company produced 95,000 lures and sold 80,000. Instructions a. Assuming the company uses variable costing, calculate Bob's manufacturing cost per unit for 2022. b. Prepare a variable-costing income statement for 2022. Calculate the product cost and prepare an income statement under absorption costing.

Calculate the product cost and prepare an income statement under variable costing. Bob's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs: E8.19 (LO 1 Variable cost per unit Direct materials $6.50 Direct labour 2.75 Variable manufacturing overhead 5.75 Variable selling and administrative expenses 3.90 Fixed costs for year Fixed manufacturing overhead $285,000 Fixed selling and administrative expenses 240,100 Bob's Company sells the fishing lures for $25. During 2022, the company produced 95,000 lures and sold 80,000. Instructions a. Assuming the company uses variable costing, calculate Bob's manufacturing cost per unit for 2022. b. Prepare a variable-costing income statement for 2022. Calculate the product cost and prepare an income statement under absorption costing.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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