Access over 20 million homework & study documents

search

Acc 561 Week 5 Exercise 19-17

Type

Homework

Rating

Showing Page:
1/2
Exercise 19-17 Wiley Plus
Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012,
the company incurred the following costs.
Variable Cost per Unit Direct materials   $7.50Direct labor   $2.45Variable manufacturing
overhead   $5.75Variable selling and administrative expenses   $3.90Fixed Costs per Year Fixed
manufacturing overhead$234,650Fixed selling and administrative expenses$240,100
Polk Company sells the fishing lures for $25. During 2012, the company sold 80,000 lures and produced
95,000 lures.
Instructions
(a)
Assuming the company uses variable costing, calculate Polk's manufacturing cost per unit for 2012.
(b)
Prepare a variable costing income statement for 2012.
(c)
Assuming the company uses absorption costing, calculate Polk's manufacturing cost per unit for 2012.
(d)
Prepare an absorption costing income statement for 2012.
a. The cost of one unit of product under variable costing would be:
b.
The variable costing income statement would be as follows.

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4