McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The comp
ID: 2412140 • Letter: M
Question
McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant’s operation:
Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
Determine the unit product cost. (Do not round intermediate calculations and round your final answer to 1 decimal place.)
Prepare an income statement for the month.
Determine the unit product cost. (Do not round intermediate calculations and round your final answer to 1 decimal place.)
Prepare a contribution format income statement for the month.
Complete all parts of question please
McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant’s operation:
Explanation / Answer
1a) Unit product cost :
1b) Income statement :
2a) Unit product cost :
2b) Income statement :
Direct material 15.20 Direct labour 7.60 Variable manufacturing overhead 2.00 Fixed manufacturing overhead (864000/48000) 18.00 Total unit product cost 42.80