Help Save Exit Fnal Exam he compary assembled the tolowing

Help Save & Exit Fnal Exam he compary assembled the tolowing projections for its first year of Newion Company manufactures and sells orve product T operations 3 Variable costa per units Manufacturing Direct materiaa Direct labor varlable manafacturing overhead 16 2 0r03Variable selling and Fixed coste per year S450,00D Pixed manufacturing overhead Fixed selling adninistrative xpense S 70, 000 During its fist year of operations Newton expects to produce 25,000 urats and sell 20,000 units The butgeted selling price of the company\'s onily produxt is $66 per unt. Required: lanswer each question independently by referring to the original deta) hat Neaton\'s projections are accurate, what will be its absorpson costing net operating income l085) in is frst year of iNexd> ype here to search

Solution

Answer 1. Calculation of Cost per Unit Under Absorption Costing Amount Direct Material                    20.00 Direct Labor                    16.00 Variable MOH                      4.00 Fixed MOH - $450,000 / 25,000 Units                    18.00 Total Cost per Unit                    58.00 Absorption Costing Income Statement Sales - 20,000 Units X $66    1,320,000.00 Cost of Goods Sold - 20,000 Units X $58    1,160,000.00 Gross Profit        160,000.00 Selling & Administrative Expenses Variable - 20,000 Units X $2            40,000.00 Fixed            70,000.00        110,000.00 Income From Operations          50,000.00 Answer 2. Calculation of Cost per Unit Under Absorption Costing Amount Direct Material                    21.00 Direct Labor                    16.00 Variable MOH                      4.00 Fixed MOH - $450,000 / 25,000 Units                    18.00 Total Cost per Unit                    59.00 Absorption Costing Income Statement Sales - 21,000 Units X $66    1,386,000.00 Cost of Goods Sold - 21,000 Units X $59    1,239,000.00 Gross Profit        147,000.00 Selling & Administrative Expenses Variable - 21,000 Units X $2            42,000.00 Fixed            70,000.00        112,000.00 Income From Operations          35,000.00 Answer 3. Calculation of Cost per Unit Under Absorption Costing Amount Direct Material                    20.00 Direct Labor                    16.00 Variable MOH                      4.00 Fixed MOH - $450,000 / 25,000 Units                    18.00 Total Cost per Unit                    58.00 Absorption Costing Income Statement Sales - 18,500 Units X $67    1,239,500.00 Cost of Goods Sold - 18,500 Units X $58    1,073,000.00 Gross Profit        166,500.00 Selling & Administrative Expenses Variable - 18,500 Units X $2            37,000.00 Fixed            70,000.00        107,000.00 Income From Operations          59,500.00 Answer 4. Calculation of Cost per Unit Under Absorption Costing Amount Direct Material                    20.00 Direct Labor                    16.00 Variable MOH                      4.00 Total Cost per Unit                    40.00 Variable Costing Income Statement Amount Sales - 20,000 Units X $66    1,320,000.00 Variable Expenses: Cost of Goods Sold - 20,000 Units X $40         800,000.00 Selling & Admn. Exp. - 20,000 Units X $2            40,000.00        840,000.00 Contribution Margin        480,000.00 Fixed Costs: Fixed MOH         450,000.00 Fixed Selling & Administrative Expenses            70,000.00        520,000.00 Income From Operations        (40,000.00) As per chegg guidelines, you can ask one question having four sub-parts.