Description of this paper

Loker Corp

Description

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Question

Loker Corp. makes and sells garden hoses in 50 ft. lengths. The following information is available for the year just ended, the company?s first year of operations;Units produced: 8,000;Variable costs per unit;Units sold: 6,000;Manufacturing (Direct Materials, Direct;Labor, and Variable Overhead) - $12.00 (total);Selling and Admin. - $2.00;Selling price:$25.00 per unit;Total fixed costs;Overhead - $7,200;Selling and Admin.- $5,000;REQUIRED (You can use abbreviations if you wish. Organize your answers in a readable way using the columns and rows below.);Compute the cost of one unit of product using absorption costing.;Compute the cost of one unit of product using variable costing.;Prepare an income statement for the year in the proper format using absorption costing.;Prepare an income statement for the year in the proper format using variable costing.;Provide a quantitative explanation/reconciliation of why the two net income amounts that you calculated above are different (or the same).

 

Paper#79967 | Written in 18-Jul-2015

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