Question

Selling price per unit is $68

Variable manufacturing costs per unit manufactured​ (includes direct materials​ [DM], direct labor​ [DL], and variable​ MOH)​ - $35
Variable operating expenses per unit sold - $3
Fixed manufacturing overhead​ (MOH) in total for the year - $126,000
Fixed operating expenses in total for the year - $93,000
Units manufactured and sold for the year - 9,000Prepare an income statement for upcoming year.

Answer 1

Income statement

Sales Revenue $ 612,000

Variable Overhead cost $ (315,000)

Fixed manufacturing overhead $ ( 126,000)

Gross Profit $ 171,000

Variable Operating expenses $ ( 27,000)

Fixed Operating expenses $( 93,000)

Net Income $ 51,000

Step-by-step explanation:

Income statement

Sales Revenue ( 9,000 units * $ 68) $ 612,000

Variable Overhead cost ( 9,000 * $ 35 ) $ (315,000)

Fixed manufacturing overhead $ ( 126,000)

Gross Profit $ 171,000

Variable Operating expenses ( $ 3 * 9000 units) $ ( 27,000)

Fixed Operating expenses $( 93,000)

Net Income $ 51,000