RECOMMENDED!!ACC 550-The Hampshire Company manufactures umbrellas
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each umbrella are as follows:Direct Materials: $3.00Direct Labor: $1.50Variable Manufacturing Overhead: $0.40Variable Selling Expenses: $1.10The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units.Beginning Inventory: 0 UmbrellasProduction: 80,000 UmbrellasSales: 60,000 UmbrellasEnding Inventory: 20,000 UmbrellasUsing the information provided above and the costs and sales information provided in Section I, complete the following in the Hampshire Company Spreadsheet in order to assist you in responding to all components of Section II:design the variable costing income statement.design the absorption costing income statement.
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