Question

Boylston Corporation has provided the following data for its two most recent years of operation. The company makes a product that it sells for $75 per unit. It began Year 1 with no units in beginning inventory. Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials 13 Direct labor 6 Variable manufacturing overhead 4 Fixed manufacturing overhead per year 112000 Selling and administrative expenses: Variable selling and administrative expense per unit sold 5 Fixed selling and administrative expense per year 71000 Year 1 Year 2 Units produced during the year 8000 7000 Units sold during the year 7000 4000 Units in ending inventory 1000 4000 a. Assume the company uses absorption costing. Compute the unit product cost in each year. b. Assume the company uses variable costing. Compute the unit product cost in each year. c. Assume the company uses absorption costing. Prepare an income statement for each year. d. Assume the company uses variable costing. Prepare an income statement for each year.

          Boylston Corporation has provided the following data for its two most recent years of operation.
The company makes a product that it sells for $75 per unit. It began Year 1 with no units in beginning inventory.
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
13
Direct labor
6
Variable manufacturing overhead
4
Fixed manufacturing overhead per year
112000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
5
Fixed selling and administrative expense per year
71000
Year 1 Year 2
Units produced during the year
8000 7000
Units sold during the year
7000 4000
Units in ending inventory
1000 4000
a. Assume the company uses absorption costing. Compute the unit product cost in each year.
b. Assume the company uses variable costing. Compute the unit product cost in each year.
c. Assume the company uses absorption costing. Prepare an income statement for each year.
d. Assume the company uses variable costing. Prepare an income statement for each year.

Boylston Corporation has provided the following data for its two most recent years of operation.
The company makes a product that it sells for 75 per unit. It began Year 1 with no units in beginning inventory.
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
13
Direct labor
6
Variable manufacturing overhead
4
Fixed manufacturing overhead per year
112000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
5
Fixed selling and administrative expense per year
71000
Year 1 Year 2
Units produced during the year
8000 7000
Units sold during the year
7000 4000
Units in ending inventory
1000 4000
a. Assume the company uses absorption costing. Compute the unit product cost in each year.
b. Assume the company uses variable costing. Compute the unit product cost in each year.
c. Assume the company uses absorption costing. Prepare an income statement for each year.
d. Assume the company uses variable costing. Prepare an income statement for each year.

Added by Molly A.

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