Blossom Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $120. Fixed costs are: $31200 manufacturing overhead, and $41200 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020–2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022.
Blossom Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $120. Fixed costs are: $31200 manufacturing overhead, and $41200 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020–2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4BE
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Blossom Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $120. Fixed costs are: $31200 manufacturing overhead, and $41200 selling and administrative. There was no beginning inventory at 1/1/20. Production was 24 units per year in 2020–2022. Sales were 24 units in 2020, 20 units in 2021, and 28 units in 2022.
Income under variable costing for 2021 is
Income under variable costing for 2021 is
$32400.
$59600.
$27200.
$34800.
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