Question

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.

Variable Costs per Unit
Direct materials $7.58
Direct labor $3.48
Variable manufacturing overhead $5.86
Variable selling and administrative expenses $3.94
Fixed Costs per Year
Fixed manufacturing overhead $222,640
Fixed selling and administrative expenses $212,201


Siren Company sells the fishing lures for $25.25. During 2017, the company sold 79,000 lures and produced 88,000 lures.

A) Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2017.

B) Prepare a variable costing income statement for 2017.

C) Assuming the company uses absorption costing, calculate Siren’s manufacturing cost per unit for 2017.

D) Prepare an absorption costing income statement for 2017.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs. Variable Costs per Unit Direct materials $8.18 Direct labor $3.76 Variable manufacturing overhead $6.32 Variable selling and administrative expenses $4.25 Fixed Costs per Year Fixed manufacturing overhead $251,160 Fixed selling and administrative expenses $229,009 Siren Company sells the fishing lures for $27.25. During 2017, the company sold 80,000 lures and produced 92,000 lures. Assuming the company uses...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $9.75 Direct labor $4.49 Variable manufacturing overhead $7.54 Variable selling and administrative expenses $5.07 Fixed Costs per Year Fixed manufacturing overhead $299,000 Fixed selling and administrative expenses $273,130 Siren Company sells the fishing lures for $32.50. During 2020, the company sold 79,000 lures and produced 92,000 lures. a. Assuming the company...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below:    Whitman Company Income Statement   Sales (42,000 units × $43.10 per unit) $ 1,810,200   Cost of goods sold (42,000 units × $21 per unit) 882,000   Gross margin 928,200   Selling and administrative expenses 441,000   Net operating income $ 487,200    The company’s selling and administrative expenses consist of $315,000 per year in fixed expenses and $3 per unit sold in...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below: Whitman Company Income Statement Sales (38,000 units × $43.10 per unit) $ 1,637,800 Cost of goods sold (38,000 units × $25 per unit) 950,000 Gross margin 687,800 Selling and administrative expenses 475,000 Net operating income $ 212,800 The company’s selling and administrative expenses consist of $285,000 per year in fixed expenses and $5 per unit sold in variable expenses....
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below:    Whitman Company Income Statement   Sales (35,000 units × $25 per unit) $ 875,000   Cost of goods sold (35,000 units × $16 per unit) 560,000   Gross margin 315,000   Selling and administrative expenses 280,000   Net operating income $ 35,000    The company’s selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units × $43.10 per unit) $ 1,724,000 Cost of goods sold (40,000 units × $24 per unit) 960,000 Gross margin 764,000 Selling and administrative expenses 500,000 Net operating income $ 264,000 The company’s selling and administrative expenses consist of $300,000 per year in fixed expenses and $5 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units × $44.10 per unit) $ 1,764,000 Cost of goods sold (40,000 units × $22 per unit) 880,000 Gross margin 884,000 Selling and administrative expenses 420,000 Net operating income $ 464,000 The company’s selling and administrative expenses consist of $300,000 per year in fixed expenses and $3 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,000 units × $43.10 per unit) $ 1,680,900 Cost of goods sold (39,000 units × $21 per unit) 819,000 Gross margin 861,900 Selling and administrative expenses 448,500 Net operating income $ 413,400 The company’s selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units × $42.60 per unit) $ 1,704,000 Cost of goods sold (40,000 units × $24 per unit) 960,000 Gross margin 744,000 Selling and administrative expenses 460,000 Net operating income $ 284,000 The company’s selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement...
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman Company Income Statement Sales (38,000 units × $42.60 per unit) $ 1,618,800 Cost of goods sold (38,000 units × $23 per unit) 874,000 Gross margin 744,800 Selling and administrative expenses 437,000 Net operating income $ 307,800 The company’s selling and administrative expenses consist of $285,000 per year in fixed expenses and $4 per unit sold in variable expenses. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT