Description of this paper

ACC 561 - Polk Company builds custom fishing lures for sporting goods stores

Description

solution


Question

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???$7.50;Direct labor???$2.45;Variable manufacturing overhead???$5.75;Variable selling and administrative expenses???$3.90;Fixed Costs per Year;Fixed manufacturing overhead $234,650;Fixed 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.;(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.

 

Paper#73996 | Written in 18-Jul-2015

Price : $22
SiteLock