Blatt Company, a Manufacturer of Slippers, Began Operations on June

question 129

Essay

Blatt Company, a manufacturer of slippers, began operations on June 1 of the current year. During this time, the company produced 210,000 units and sold 185,000 units at a sales price of $40 per unit. Cost information for this period is shown in the following table:
$$\begin{array}{l}\text { Production costs }\\\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 5.00 \text { per unit } \\\hline \text { Direct labor } & \$ 4.75 \text { per unit } \\\hline \text { Variable overhead } & \$ 302,000 \text { in total } \\\hline \text { Fixed overhead } & \$ 405,000 \text { in total } \\\hline \text { Non-production costs } & \\\hline \text { Variable selling and administrative } & \$ 9,000 \text { in total } \\\hline \text { Fixed selling and administrative } & \$ 25,000 \text { in total } \\\hline\end{array}\end{array}$$ a. Prepare Blatt's December 31st income statement for the current year under absorption costing.
b. Prepare Blatt's December 31st income statement for the current year under variable costing.

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Definitions:

Dorsal Stream

The pathway in the brain that processes spatial awareness and the relationships between objects, often referred to as the "where" or "how" pathway.

Brain Damage

Injury to the brain that can result in impairments or disabilities in cognitive function, physical abilities, or emotional behavior.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear, transmitting sound vibrations.

Auditory Canal

The tube that runs from the outer ear to the middle ear, which sound waves travel through to reach the eardrum.