1. Delight Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $110 Units in beginning inventory. Units produced 4,600 4,200 400 Units sold . Units in ending inventory . Variable costs per unit: Direct materials ... Direct labor. Variable manufacturing overhead Variable selling and administrative... $46 $28 $5 $10 Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.. $55,200 $25,200 Required: a. What is the unit product cost for the month under absorption costing and variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)
1. Delight Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $110 Units in beginning inventory. Units produced 4,600 4,200 400 Units sold . Units in ending inventory . Variable costs per unit: Direct materials ... Direct labor. Variable manufacturing overhead Variable selling and administrative... $46 $28 $5 $10 Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative.. $55,200 $25,200 Required: a. What is the unit product cost for the month under absorption costing and variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all if possible, or answer the last two parts
Transcribed Image Text:1. Delight Corporation, which has only one product, has provided the following data concerning
its most recent month of operations:
Selling price.
$110
Units in beginning inventory..
Units produced .
Units sold..
Units in ending inventory
4,600
4,200
400
.............
Variable costs per unit:
Direct materials
Direct labor...
Variable manufacturing overhead ..
Variable selling and administrative...
$46
$28
$5
$10
Fixed costs:
Fixed manufacturing overhead.
Fixed selling and administrative.
$55,200
$25,200
Required:
a. What is the unit product cost for the month under absorption costing and variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating
income for the month. (Hint: Use the reconciliation method.)
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