Sawicki Corporation Manufactures and Sells One Product

question 315

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:

Monocular Cue

A depth cue that is available even when the world is viewed with one eye alone, such as size, texture gradient, and linear perspective.

Contralateral Input

The process in neuroscience where sensory information received on one side of the body is processed in the opposite side of the brain.

Texture Gradient

A depth cue based on the gradual change of texture as objects recede in the distance, influencing perception of depth.

Interposition

A visual cue where one object partially blocks another, helping the observer gauge depth and order in a scene.