60.1K

Verified Solution

Link Copied!

Bracey Company manufactures and sells one product. The following information pertains to the company's first year of oper

Variable cost per unit:

Direct materials

$$19$

Fixed costs per year:

Direct labor

$ $250,000$

Fixed manufacturing overhead $$300,000$

Fixed selling and administrative expenses $$90,000$

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. D year of operations, Bracey produced $20,000$ units and sold $18,000$ units. The selling price of the company's product is $$55$

Required:

Assume the company uses super$-$variable costing:

a$.$ Compute the unit product cost for the year.

b$.$ Prepare an income statement for the year.

Assume the company uses a variable costing system that assigns $$12\mathrm{.}50$ of direct labor cost to each unit produced:

a$.$ Compute the unit product cost for the year.

b$.$ Prepare an income statement for the year.

Assume the company uses an absorption costing system that assigns $$12\mathrm{.}50$ of direct labor cost and $$15\mathrm{.}00$ of fixed ma overhead cost to each unit produced:

a$.$ Compute the unit product cost for the year.

b$.$ Prepare an income statement for the year.

a$.$ Reconcile the difference between the super$-$variable costing and variable costing net operating incomes.

b$.$ Reconcile the difference between the super$-$variable costing and absorption costing net operating incomes.

Complete this question by entering your answers in the tabs below.

Required $1$A Required $1$B Required $2$A Required $2$B Required $3$A

Compute the unit product cost for the year. Assume the company uses an absorption costing system that assigns $$12\mathrm{.}50$ of direct labor cost and $$15\mathrm{.}00$ of fixed manufacturing overhead cost to each unit produced.

Note: Round your answer to $2$ decimal places.

Unit product cost

Answer & Explanation Solved by verified expert

See Answer