Question

Absorption-Costing Income Statement During the most recent year, Osterman Company had the following data: Units in beginning inventory — Units produced 10,000 Units sold ($47 per unit) 9,300 Variable costs per unit: Direct materials $9 Direct labor $6 Variable overhead $4 Fixed costs: Fixed overhead per unit produced $5 Fixed selling and administrative $138,000 Required: 1. Calculate the cost of goods sold under absorption costing. $ 223,200 2. Prepare an income statement using absorption costing. Enter amounts as positive numbers.

Answer 1

Answer:

Income Statment for the year ended december 31th, 20X9

Sales Revenue 437,100 (9,300 units x 47 price per unit)

COGS           223,200     (9,300 units x 24 unit cost)

Gross Profit         213,900

S&A            138,000

Net Income           75900

Explanation:

Unit cost:

DM + DL + VO + FO = 9 + 6 + 4 + 5 = 24