Exercise 19-17
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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$8.18
Direct labor$2.67
Variable manufacturing overhead$6.27
Variable selling and administrative expenses$4.25
Fixed Costs per Year
Fixed manufacturing overhead$257,164
Fixed selling and administrative expenses$261,709
Polk Company sells the fishing lures for $27.25. During 2012, the company sold81,100lures and produced95,600lures.
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(a)
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Assuming the company uses variable costing, calculate Polks manufacturing cost per unit for 2012.(Round answer to 2 decimal places, e.g.10.50.)
Manufacturing cost per unit$.wiley.com/edugen/art2/common/pixel.gif”>
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(b)
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Prepare a variable costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
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.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses$.wiley.com/edugen/art2/common/pixel.gif”>
.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses.wiley.com/edugen/art2/common/pixel.gif”>
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.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses.wiley.com/edugen/art2/common/pixel.gif”>
.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses.wiley.com/edugen/art2/common/pixel.gif”>
.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses.wiley.com/edugen/art2/common/pixel.gif”>
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.wiley.com/edugen/art2/common/pixel.gif”>Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses$.wiley.com/edugen/art2/common/pixel.gif”>
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(c)
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The parts of this question must be completed in order. This part will be available when you complete the part above.
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(d)
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The parts of this question must be completed in order. This part will be available when you complete the part above.
PLEASE KEEP ON MIND THE ITEMS C AND D WILL SHOW UP AFTER ANSWERING ITEM B, GIVE ME A QUOTE FOR ITEMS B,C,D AND NOT FOR SEPARATE, EVERY ITEM HAS THE SAME LEVEL OF COMPLEXITY
