Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative $ 11 $3 $1 $1 Net operating income $ 989,000 0 989,000 0 $ 989,000

Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 330,000 Fixed selling and administrative $ 240,000 During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 per unit. Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative $ 11 $3 $1 $1 Net operating income $ 989,000 0 989,000 0 $ 989,000

Name: Lynch Company manufactures and sells a single product. The following
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Description: Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year ofoperations:Variable costs per unit:Manufacturing:Direct materialsDirect laborVariable manufacturing overheadVariable selling a

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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