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On June 30, the end of the first year of operation...

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On June 30, the end of the first year of operations, Reinemund Equipment Company manufactured 2,200 units and sold 1,900 units. The following income statement was prepared, based on the variable costing concept: Reinemund Equipment Company Variable Costing Income Statement for the Year Ended Jen 30, 2011: Sales: 45,600,000 Variable cost of goods sold: Variable cost of goods manufactured:25,344,000 Less inventory, July 31 3,456,000 Variable cost of goods sold 21,888,000 Manufactoring Margin 23,712,000 Variable selling/administrative expenses 5,472,000 Contribution Margin 18,240,000 Fixed Costs: Fixed manufactoring cost: 11,616,000 Fixed selling/admin expenses 3,648,000 15,264,000 Income from operations 2,976,000 Determine the unit cost of goods manufactored, based on (a) the variable costing concept and (b) the absorption costing concept.

 

Paper#13547 | Written in 18-Jul-2015

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