Coverall Inc Produces And Sells A Unique Type Of Case For A Standard Size Tablet Computer That Is Guaranteed Waterproof 1 (45.67 KiB) Viewed 55 times
Coverall Inc. produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet: Beginning inventory Units produced 37,000 23,500 Units sold Selling price per unit 93 Selling and administrative expenses: Variable per unit 8 Fixed (total) 705,000 Manufacturing costs: Direct materials cost per unit 21 Direct labour cost per unit 10. Variable manufacturing overhead cost per unit $ 11 Fixed manufacturing overhead cost (total) $1,110,000 Since the new case is unique in design, management is anxious to see how profitable It will be and has asked that an income statement be prepared for the month. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. Unit product cost $ $ $ $ $
b. Prepare an Income statement for the month. (Do not leave any empty spaces; Input a O wherever It is required.) Cost of goods sold: 0 0 0 0 2. Assume that the company uses variable costing. a. Determine the unit product cost. Unit product cost S
b. Prepare a contribution format Income statement for the month. (Do not leave any empty spaces; Input a 0 wherever it is required.) Variable expenses: Variable cost of goods sold: 0 0 0 Fixed expenses: 0 0 S
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