Sims Company, a manufacturer of tablet computers, bogan opcrations on January 1, 2019. Its cost and sales information for this yoar follows. Manufacturing costs Direct materials 48 per unit 60 per unit Direct labor Overhead costs 40 per unit $6,680, 000 (per year) Variable Fixed Selling and administrative costs for the year Variable $ 725,000 $4,000,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110, 000 units 80,000 units 24 350 per unit 1. Prepare an income statement for the year using varlable costing. 2. Prepare an income statement for the year using absorption costing.

Sims Company, a manufacturer of tablet computers, bogan opcrations on January 1, 2019. Its cost and sales information for this yoar follows. Manufacturing costs Direct materials 48 per unit 60 per unit Direct labor Overhead costs 40 per unit $6,680, 000 (per year) Variable Fixed Selling and administrative costs for the year Variable $ 725,000 $4,000,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110, 000 units 80,000 units 24 350 per unit 1. Prepare an income statement for the year using varlable costing. 2. Prepare an income statement for the year using absorption costing.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 13E

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