Sawicki Corporation Manufactures and Sells One Product

question 40

Essay

Sawicki Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 25,000 units and sold 18,000 units. The company's only product is sold for $224 per unit.
Required:
a. Assume the company uses super-variable costing. Compute the unit product cost for the year and prepare an income statement for the year.
b. Assume that the company uses an absorption costing system that assigns $10 of direct labor cost and $62 of fixed manufacturing overhead to each unit that is produced. Compute the unit product cost for the year and prepare an income statement for the year.

---

Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a specified level of confidence.

Population Parameter

A numerical value summarizing the whole population.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Mean

The average value of all the elements in a population.