Company A manufactures and sells one product. During the first year the company produced and sold 30000 units, during the second - the company produced 37500 units and sold 25000 units. The selling price is 29 €. Other information is provided in the table. Items Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses |Amounts 10 € 6 € 2 € 1€ 180 000 € 40 000 € Prepare the income statement, using absorption costing, and compute the net operating income (loss) for the first year. (In case of lose write the amount with "minus" sign) Answer:

Company A manufactures and sells one product. During the first year the company produced and sold 30000 units, during the second - the company produced 37500 units and sold 25000 units. The selling price is 29 €. Other information is provided in the table. Items Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses |Amounts 10 € 6 € 2 € 1€ 180 000 € 40 000 € Prepare the income statement, using absorption costing, and compute the net operating income (loss) for the first year. (In case of lose write the amount with "minus" sign) Answer:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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