Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat a sales price of $3.200 each) for 2021, The workstations' manufacturing costs include the following Direet materiale Direet labor Variable overhead Pixed ovechead 770 per unit 400 per unie .60 par unit 19.200 per year The selling expenses related to these workstations follow. Variable geliing expenses Pixed selling expenses 35 per unit $3,000 per year Wayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell any workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing.
Wayne Frederick expects sales of Bison Business Solutions's line of computer workstation furniture to equal 300 workstations tat a sales price of $3.200 each) for 2021, The workstations' manufacturing costs include the following Direet materiale Direet labor Variable overhead Pixed ovechead 770 per unit 400 per unie .60 par unit 19.200 per year The selling expenses related to these workstations follow. Variable geliing expenses Pixed selling expenses 35 per unit $3,000 per year Wayne Frederick is considering how many workstations to produce in 2021, He is confident that he will be able to sell any workstations in his 2021 ending inventory during 2022. However, Wayne Frederick does not want to overproduce as he does not have sufficient storage space for many more workstations. Required: 1. Complete the following income statements using absorption costing. 2. Complete the following income statements using variable costing.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter19: Variable Costing (varcost)
Section: Chapter Questions
Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...
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