Sutcliffe Corporation Manufactures and Sells Top-Of-The-Line Saxophones and Uses Standard

question 6

Essay

Sutcliffe Corporation manufactures and sells top-of-the-line saxophones and uses standard costing.For the month of September,there was no beginning inventory,there were 1500 units produced and 1250 units sold.The manufacturing variable cost per unit is $770 and the operating cost per unit was $625.The fixed manufacturing cost is $450 000 and the fixed operating cost is $75 000.The selling price per unit is $1850.
Required:
Prepare the income statement for Sutcliffe Corporation for September under variable costing.
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Definitions:

Materials Costs

The expenses associated with the raw materials used in the manufacturing of products or goods.

Canning Department

A section within a manufacturing process focused on the preservation of food by sealing it in airtight containers.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Direct Materials Cost

Direct materials cost refers to the cost of raw materials and components that are directly used in the production of a product, which are easily traceable to the finished product.