and sells a single product. The following data refer to the year just completed: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year 29,100 26,600 $ 435 $ 24 $345,800 $ $ $ 239 55 34 $582,000 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing (provide a collapsed cost of goods sold number. In otherwords, one number rather than the components of inventory). c. Prepare an income statement for the year using variable costing.(provide a collapsed cost of goods sold number. In otherwords, one number rather than the components of inventory). d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
and sells a single product. The following data refer to the year just completed: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year 29,100 26,600 $ 435 $ 24 $345,800 $ $ $ 239 55 34 $582,000 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing (provide a collapsed cost of goods sold number. In otherwords, one number rather than the components of inventory). c. Prepare an income statement for the year using variable costing.(provide a collapsed cost of goods sold number. In otherwords, one number rather than the components of inventory). d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:and sells a single product. The following data refer to the year just completed:
Beginning inventory
Units produced
Units sold
Selling price per unit
Selling and administrative expenses:
Variable per unit
Fixed per year.
Manufacturing costs:
Direct materials cost per unit
Direct labor cost per unit
Variable manufacturing overhead cost per unit
Fixed manufacturing overhead per year
Show Transcribed Text
$
Required A Required B Required C Required D
$
$345,800
0
29,100
26,600
435
$
Absorption costing
Variable costing
24
239
55
34
$582,000
$
$
Assume that direct labor is a variable cost.
Required:
a. Compute the unit product cost under both the absorption costing and variable costing approaches.
b. Prepare an income statement for the year using absorption costing (provide a collapsed cost of goods sold number. In otherwords,
one number rather than the components of inventory).
c. Prepare an income statement for the year using variable costing.(provide a collapsed cost of goods sold number. In otherwords, one
number rather than the components of inventory).
d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
Complete this question by entering your answers in the tabs below.
Compute the unit product cost under both the absorption costing and variable costing approaches.
Cost Per Unit
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B Required C Required D
Prepare an income statement for the year using absorption costing.
Absorption Costing Income Statement
Show Transcribed Text
Required A Required B
Complete this question by entering your answers in the tabs below.
Variable expenses:
Fixed expenses:
Required C Required D
Prepare an income statement for the year using variable costing.
Variable Costing Income Statement
Show Transcribed Text
0
Required A Required B Required C Required D
0
Complete this question by entering your answers in the tabs below.
Net operating income (loss) under absorption costing
< Required C
0
0
Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Net operating income (loss) under variable costing
Required D >
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Step 1: Absorption costing and Variable costing :
VIEWStep 2: a)Calculation of unit product cost under absorption costing and variable costing :
VIEWStep 3: b)Absorption costing income statement :
VIEWStep 4: c )Preparation of income statement under variable costing :
VIEWStep 5: d) Reconciliation of variable costing and Absorption costing income statement
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