Vaughns Company builds custom fishing lures for sporting goods store.pdf

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Vaughn's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs: Vaughn's Company sells the fishing lures for $25.00. During 2022, the company produced 95,900 lures and sold 79,400 . Your answer is partially correct. Assume the company uses normal-absorption costing and uses the budgeted volume of 95,100 units to allocate the fixed overhead rate rather than the actual production volume of 95,900 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs. Do the following: 1. Calculate the manufacturing cost per unit. (Round per unit calculations and final answer to 2 decimal places, e.g. 15.25.) Manufacturing cost per unit 2. Prepare a normal-absorption-costing income statement for 2022. (Round per unit calculations to 2 decimal places, eg 15.25 and final answers to 0 decimal places, e.8. 125.) VAUGHN'S COMPANY Income Statement-Normal-Absorption Costing For the Year Ended December 31, 2022 Cost of goods sold Beginning inventory.

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