Number of units produced 3,100 Number of units sold 2,400 Unit sales price $ 350 Direct materials per unit $ 60 Direct labor per unit $ 50 Variable manufacturing overhead per unit $ 11 Fixed manufacturing overhead per unit ($232,500/3,100 units) $ 75 Total variable selling expenses ($14 per unit sold) $ 33,600 Total fixed general and administrative expenses $ 64,000 Required: Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

See explanation section.

Explanation:

Requirement 1

                                        Crystal Cold’s

                        Absorption Costing Income Statement

                         For the year ending, December 20YY

Sales revenue  ($2,400 units × $ 350) = $840,000

Less: Cost of goods sold

Direct materials ($2,400 units × 60) = $144,000

Direct labor ($2,400 units × 50) = $120,000

Variable manufacturing overhead ($2,400 units × 11) = $26,400

Fixed manufacturing overhead = $232,500

Total cost of goods sold = $522,900

Gross profit = $317,100

Less: Selling, General & Administrative expenses

                Variable SG&A = $33,600

                Fixed SG&A = $64,000

Total SG&A  = $97,600

Net Income = $219,500

Requirement 2

                                      Crystal Cold’s

                        Variable Costing Income Statement

                       For the year ending, December 20YY

Sales revenue  ($2,400 units × $ 350) = $840,000

Less: Variable product cost

Direct materials ($2,400 units × 60) = $144,000

Direct labor ($2,400 units × 50) = $120,000

Variable manufacturing overhead ($2,400 units × 11) = $26,400

Variable selling expense $33,600

Total variable expenses = $324,000

Contribution margin = $516,000

Less: Fixed expenses

         Fixed manufacturing overhead = $232,500

         Fixed selling expense                = $64,000

Total fixed expense                              = $296,500

Net Income                                            = $219,500

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

answer; private store;