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Question
Stonehenge Inc., a manufacturer of landscaping blocks, began operations on April 1 of the current year. During this time, the company produced 750,000 units and sold 720,000 units at a sales price of $9 per unit. Cost information for this period is shown in the following table:Production costs
Direct materials $1.80 per unit
Direct labor $.30 per unit
Variable overhead $495,000 in total
Fixed overhead $450,000 in total
Non production costs
Variable selling and administrative $18,000 in total
Fixed selling and administrative $53,000 in total
a. Prepare Stonehenge's December 31st income statement for the current year under absorption costing.
b. Prepare Stonehenge's December 31st income statement for the current year under variable costing.
a.
STONEHENGE, INC.
Income Statement (Absorption Costing)
For the nine months ended December 31, xx
Answer
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Direct labor X X
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Variable manufacturing overhead
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Match the following
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