5. Last year, Gary Company produced 12,000 units and sold 10,000 units (for $240/unit), had...
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5. Last year, Gary Company produced 12,000 units and sold 10,000 units (for $240/unit), had no beginning inventory, and incurred the following costs: Direct materials per unit, $44; Direct labor per unit, $16; Variable overhead per unit. $18; Total fixed manufacturing overhead, $24,000; and Total selling and administrative, $9,000. Gary's gross profit per unit under absorption costing would be? (check figure: Gross profit per unit under absorption costing $160). 6. Last year, Gary Company produced 12,000 units and sold 10,000 units (for $240/unit), had no beginning inventory, and incurred the following costs: Direct materials per unit, $44; Direct labor per unit, $16; Variable overhead per unit $18; Total fixed manufacturing overhead, $24,000; and Total selling and administrative, $9,000 (look familiar?). Create income statements for Gary using (a) the absorption costing format and (b) the contribution margin format
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