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Paint More LLC has organized a new division to manufacture and sell specialty paint. The division?s monthly costs are shown below:

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Question

Paint More LLC has organized a new division to manufacture and sell specialty paint. The division?s monthly costs are shown below;Manufacturing costs;Variable costs per unit;Direct materials $12;Variable manufacturing overhead $1;Fixed manufacturing overhead costs (total) $100,000;Selling and administrative costs;Variable 7% of sales;Fixed (total) $31,000;Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded;Units produced 5,000;Units sold 4,000;Submit an Excel document which each tab labeled by item number in good form that demonstrates the following;Compute the unit product cost under;Absorption costing;Variable costing;Prepare an absorption costing income statement for September;Prepare a contribution format income statement for September using variable costing

 

Paper#80312 | Written in 18-Jul-2015

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