The Wye Co. Ltd. expects to produce 11,000 units of product RGW during its fi rst year of operations. The following standard manufacturing costs per unit were established, based on this expected production volume:
Direct materials ………………….$13
Direct labour ………………………12
Variable overhead …………………11
Fixed overhead …………………….6
Unit standard cost ………………$42
No variable selling and administrative costs were incurred during the year. At the end of the first year of operations, the accountant prepared income statements utilizing actual absorption costing, normal variable costing, normal absorption costing, standard variable costing, and standard absorption costing. These five income statements, randomly labelled A through E, are produced below:
REQUIRED
A. Which income statement was prepared using actual absorption costing?
B. Which income statement was prepared using standard variable costing?
C. How many units of product RGW were actually produced during the year?
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