Boyd Manufacturing Opened for Business on January 1, 2025

Essay

Boyd Manufacturing opened for business on January 1, 2025. During 2025, the company budgeted for 12,000 units with fixed manufacturing costs of $78,000 but only produced 10,000 units and incurred fixed productions costs of $64,000 and fixed operating expenses of $23,000. The variable cost to produce each unit was $22 with $6 of variable operating expenses per unit. The company prepares its income statement using absorption costing. Boyd uses standard costing within its absorption costing system. There were no price or efficiency variances this year, and any other variances are written off directly to COGS. Instructions
a.Calculate the cost per unit that Boyd will capitalize into inventory this year.
b.Calculate Boyd's fixed MOH volume variance for 2025. (Identify amount and sign)
c.If Boyd sold 9,500 units at $45 per unit, prepare the company's income statement in good form.
d.Determine the FG Inventory balance to be reported on the balance sheet at the end of 2025.