During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. Prepare an income statement using absorption costing. Enter amounts as positive numbers. Osterman Company Income Statement under Absorption Costing For the Most Recent Year Sales Less: Cost of goods sold Gross margin Less: Selling and administrative expenses Operating income
During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. Prepare an income statement using absorption costing. Enter amounts as positive numbers. Osterman Company Income Statement under Absorption Costing For the Most Recent Year Sales Less: Cost of goods sold Gross margin Less: Selling and administrative expenses Operating income
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Absorption-Costing Income Statement
During the most recent year, Osterman Company had the following data:
Units in beginning inventory | — |
Units produced | 10,000 |
Units sold ($47 per unit) | 9,300 |
Variable costs per unit: | |
Direct materials | $9 |
Direct labor | $6 |
Variable overhead | $4 |
Fixed costs: | |
Fixed overhead per unit produced | $5 |
Fixed selling and administrative | $138,000 |
Required:
1. Calculate the cost of goods sold under absorption costing.
Prepare an income statement using absorption costing. Enter amounts as positive numbers.
Osterman Company | |
Income Statement under Absorption Costing | |
For the Most Recent Year | |
Sales | |
Less: Cost of goods sold | |
Gross margin | |
Less: Selling and administrative expenses | |
Operating income |
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