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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pleae answer part c only
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.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education