SOLUTION: UCLA Toys Retailer Income Statement Exercise

Puzzles, Pranks & Games is a retail business selling children’s toys and games as well as a wide selection of jigsaw puzzles and accessories. They purchase their inventory from local and national wholesale suppliers. For the year ending December 31, 2017, they reported these revenues and expenses. Using this information, prepare an income statement for Puzzles, Pranks & Games for 2017.

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2
Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 16,000 units of production.
Average Costper UnitDirect Materials$12          Direct Labor9          Indirect Materials1          Fixed manufacturing overhead5          Variable manufacturing overhead3          Fixed selling and administrative expenses8          Variable sales commissions25          
Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
Variable cost per unit $fill in the blank 1
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $fill in the blank 2
C. If 21,000 units are produced, what are the total variable costs?
Total variable costs $fill in the blank 3
D. If 12,000 units are produced, what are the total variable costs?
Total variable costs $fill in the blank 4
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $fill in the blank 5
F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $fill in the blank 6
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $fill in the blank 7
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $fill in the blank 8

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