Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process). Total CostNumber of UnitsUnit CostManufacturing costs: Variable$465,00030,000$15.50 Fixed 210,00030,000 7.00 Total$675,000 $22.50 Selling and administrative expenses: Variable$2 per unit sold Fixed$39,000 In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit. (a)Prepare a variable costing income statement.(b)Prepare an absorption costing income statement.(c)What is the fixed overhead deferred under absorption costing?

The variable costing income statement is based on the contribution format where all the variable…

Answered: Kissimmee Paint Co. reported the…

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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Kissimmee Paint Co. reported the following data for the month of July. There were no beginning inventories and all units were completed (no work in process).

	Total Cost	Number of Units	Unit Cost
Manufacturing costs:
Variable	$465,000	30,000	$15.50
Fixed	210,000	30,000	7.00
Total	$675,000		$22.50

Selling and administrative expenses:
Variable	$2 per unit sold
Fixed	$39,000

In the month of July, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.

(a)	Prepare a variable costing income statement.
(b)	Prepare an absorption costing income statement.
(c)	What is the fixed overhead deferred under absorption costing?