DePaul Company projects sales of 25,000 units during May at $6 per unit. Production costs are...
DePaul Company projects sales of 25,000 units during May at $6 per unit. Production costs are $1.80 per unit. Variable selling and administrative expenses are $0.60 per unit; fixed selling and administrative expenses are $60,000. Compute the following:
1. Cost of Goods Sold
2. Net Income
Homework Answers
| 1) | cost of goods sold | |||||
| 25,000 units *1.80 | ||||||
| 45000 | ||||||
| 2) | net income | |||||
| sales | (25000*6) | 150000 | ||||
| less: cost of goods sold | 45,000 | |||||
| Gross profit | 105,000 | |||||
| selling & administrative expense | ||||||
| variable selling & adm exp | 15000 | |||||
| fixed selling & adm expense | 60,000 | 75,000 | ||||
| net income | 30,000 | |||||
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