19 17 2 424800

Aug 29, 2021 | Uncategorized

Exercise 19 17

Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.

Variable Cost per Unit
Direct materials $8.18
Direct labor $2.67
Variable manufacturing overhead $6.27
Variable selling and administrative expenses $4.25
Fixed Costs per Year
Fixed manufacturing overhead $257,164
Fixed selling and administrative expenses $261,709

Polk Company sells the fishing lures for $27.25. During 2012, the company sold81,100lures and produced95,600lures.

(a)
Your answer is correct.

Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit $

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(b)

Prepare a variable costing income statement for 2012.

POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses $
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses $
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses $

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(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(d)

The parts of this question must be completed in order. This part will be available when you complete the part above.

PLEASE KEEP ON MIND THE ITEMS C AND D WILL SHOW UP AFTER ANSWERING ITEM B, GIVE ME A QUOTE FOR ITEMS B,C,D AND NOT FOR SEPARATE, EVERY ITEM HAS THE SAME LEVEL OF COMPLEXITY