Question :
118.The following information relates to Markley Mattresses for fiscal year : 1302755
118.The following information relates to Markley Mattresses for fiscal year 2014, the company’s first year of operations:
Units produced 20,000
Units sold 17,000
Selling price per unit $30
Direct material per unit $5
Direct labor per unit $5
Variable manufacturing overhead per unit $2
Variable selling cost per unit $3
Annual fixed manufacturing overhead $160,000
Annual fixed selling and administrative expense $80,000
a.Prepare an income statement using full costing.
b.Prepare an income statement using variable costing.
119.Adam Tools produces screwdrivers and had 1,700 in inventory at the beginning of the year. It has a variable manufacturing cost of $5.00 per unit, a variable selling cost of $0.75 per unit; a fixed manufacturing cost of $45,000 per year; and a fixed selling and administrative cost of $24,000 per year. The selling price is $14.00 per screwdriver. During the year, 18,000 screwdrivers were produced and 18,400 were sold. Assume the same unit costs in all years.
a.What is the product cost per screwdriver using variable costing?
b.What is the product cost per screwdriver using full costing?
c.Prepare an income statement using variable costing. Omit the statement heading.
d.Prepare an income statement using full costing. Omit the statement heading.
120.Nader, Inc. produces e-readers that it sells for $80 each. Costs involved in production are:
Direct material $11 per unit
Direct labor 15 per unit
Variable manufacturing overhead 12 per unit
Fixed manufacturing overhead per year $448,000
In addition, the company has selling and administrative costs:
Fixed selling costs per year$175,000
Fixed administrative costs per year75,000
Variable selling and admin costs per year$6 per unit
During the year, Nader produced 28,000 readers and sold 29,400. Beginning inventory totaled 1,800 units. Assume the same unit costs in all years. What is the value of ending inventory using full costing?
121.Nader, Inc. produces e-readers that it sells for $80 each. Costs involved in production are:
Direct material $11 per unit
Direct labor 15 per unit
Variable manufacturing overhead 12 per unit
Fixed manufacturing overhead per year $448,000
In addition, the company has selling and administrative costs:
Fixed selling costs per year$175,000
Fixed administrative costs per year75,000
Variable selling and admin costs per year$6 per unit
During the year, Nader produced 28,000 readers and sold 29,400. Beginning inventory totaled 1,800 units. Assume the same unit costs in all years. How much is gross margin per unit and in total?