Asuming the company uses variable costing calculate polks


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 $7.73 Direct labor $2.52 Variable manufacturing overhead $5.92 Variable selling and administrative expenses $4.02 Fixed Costs per Year Fixed manufacturing overhead $244,856 Fixed selling and administrative expenses $247,303 Polk Company sells the fishing lures for $25.75. During 2012, the company sold 81,400 lures and produced 96,400 lures.

(a) 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 $

(b) Prepare a variable costing income statement for 2012.

(c) Assuming the company uses absorption costing, calculate Polk's manufacturing cost per unit for 2012.

(d) Prepare an absorption costing income statement for 2012

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Accounting Basics: Asuming the company uses variable costing calculate polks
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