Denton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeTotal variable cost per unitFixed costs per month:Fixed manufacturing overheadFixed selling and administrativeTotal fixed cost per monthThe product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow:JulyAugustUnitsProducedUnits Sold14,00022,000The company's Accounting Department has prepared the following absorption costing income statements for July and August:JulyAugust$ 644,000 $ 1,012,000308,000336,000203,000$ 133,00018,00018,000SalesCost of goods soldGross marginSelling and administrative expensesNet operating income$31142$ 20a. Absorption costingb. Variable costing$ 72,000175,000$ 247,000Required:1. Determine the unit product cost under:a. Absorption costing.b. Variable costing.2. Prepare variable costing income statements for July and August.3. Reconcile the variable costing and absorption costing net operating incomes.484,000528,000219,000$ 309,000Complete this question by entering your answers in the tabs below.< Required 1Required 1 Required 2Required 3Determine the unit product cost under: (a) Absorption costing, (b) Variable costing.Unit ProductCostRequired 2 > Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare variable costing income statements for July and August.Denton CompanyVariable Costing Income StatementNet operating income (loss)JulyRequired 1 Required 2 Required 3< Required 1Complete this question by entering your answers in the tabs below.AugustRequired 3 >Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negativevalue.)Variable costing net operating income (loss)Add (deduct) fixed manufacturing overhead cost deferred in (released from)inventory under absorption costingAbsorption costing net operating income (loss)Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes< Required 2JulyRequired 3 >August

The income statement can be prepared using various methods such as absorption costing and variable…

and sells a sir July August Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Units Produced Cost data 18,000 18,000 $3 11 $ 20 $ 72,000 175,000 $ 247,000

and sells a sir July August Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month The product sells for $46 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Units Produced Cost data 18,000 18,000 $3 11 $ 20 $ 72,000 175,000 $ 247,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of operations ended July 31, Head Gear Inc. manufactured 29,300 hats, of which 27,800 were sold. Operating data for the month are summarized as follows: Sales $177,920 Manufacturing costs: Direct materials $105,480 Direct labor 29,300 Variable manufacturing cost 11,720 Fixed manufacturing cost 11,720 158,220 Selling and administrative expenses: Variable $8,340 Fixed 6,090 14,430 During August, Head Gear Inc. manufactured 26,300 hats and sold 27,800 hats. Operating data for August are summarized as follows: Sales $177,920 Manufacturing costs: Direct materials $94,680 Direct labor 26,300 Variable manufacturing cost 10,520 Fixed manufacturing cost 11,720 143,220 Selling and administrative expenses: Variable $8,340 Fixed 6,090 14,430 Required: 1a. Prepare income…
1) What is the ending inventory (February) under variable costing? 2) What is the ending inventory (February) under absorption costing?
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (6, 100 units) $201, 300 Cost of goods sold: Cost of goods manufactured (7, 100 units) $163,300 Inventory, April 30 (1,000 units) (23,000) Total cost of goods sold (140, 300) Gross profit $61,000 Selling and administrative expenses (36,830) Operating income $24, 170 If the fixed manufacturing costs were $ 44,091 and the fixed selling and administrative expenses were $18, 040, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 $Sales Variable cost of goods sold: $- Select - - Select - - Select - $- Select - - Select - $ - Select - Fixed costs: $Variable cost of goods sold Fixed…
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 154 2,560 2,230 330 51 24 $. 15 16 $92,160 $11,150 The tegross margin for the month under absorption costing is: Multiple Chotce $62.440 S15.610, K Prev 4: of 10 Next > ere to search
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (5,600 units) Cost of goods sold: Cost of goods manufactured (6,600 units) Inventory, April 30 (900 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income Variable cost of goods sold: $138,600 (18,900) Fixed costs: $162,400 If the fixed manufacturing costs were $30,492 and the fixed selling and administrative expenses were $12,600, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. Joplin Company Variable Costing Income Statement For the Month Ended April 30 (119,700) $42,700 (25,720) $16,980
Provide table
Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (23,200 x $81) $1,879,200 Manufacturing costs (23,200 units): Direct materials 1,127,520 Direct labor 266,800 Variable factory overhead 125,280 Fixed factory overhead 148,480 Fixed selling and administrative expenses 40,400 Variable selling and administrative expenses 48,800 The company is evaluating a proposal to manufacture 25,600 units instead of 23,200 units, thus creating an ending inventory of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 23,200 and 25,600 units are manufactured in the absorption costing format. If an amount box does not…
Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: Joplin Company Absorption Costing Income Statement For the Month Ended April 30 Sales (3,700 units) $74,000 Cost of goods sold: Cost of goods manufactured (4,300 units) $60,200 Inventory, April 30 (600 units) (8,400) Total cost of goods sold (51,800) Gross profit $22,200 Selling and administrative expenses (13,480) Operating income $8,720 If the fixed manufacturing costs were $16,254 and the fixed selling and administrative expenses were $6,600, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars.
Estimated income statements, using absorption and variable costingPrior to the first month of operations ending October 31, Marshall Inc.estimated the attached operating results: The company is evaluating a proposal to manufacture 50,000 unitsinstead of 40,000 units, thus creating an ending inventory of 10,000 units.Manufacturing the additional units will not change sales, unit variablefactory overhead costs, total fixed factory overhead cost, or total sellingand administrative expenses. a. Prepare an estimated income statement, comparing operatingresults if 40,000 and 50,000 units are manufactured in (1) theabsorption costing format and (2) the variable costing format.b. What is the reason for the difference in operating incomereported for the two levels of production by the absorption costingincome statement?
Haresh
A company produces and sells a single product, the standard unit costs details of which the follows: Direct marterial 2kilos x N$4.5 per kilo Direct labour 3 hours x N$5 per hour 3 hours x N$3 per hour 28°C Mostly sunny Variable overhead The total fixed overhead is budgeted at N$90,000 per month and absorbed on a rate per unit basis. The budgeted output per month is 15,000 units. The product has a standard selling price of N$50 per unit. The following actitivity took place during January and February: January February Sales A company produces and sells a single product 14,000 units 16,000 units OL O
Prepare January and February income statements under Absorption and Variable Costing Nagsumikap Naman Ako Co. assembles and sells genetically modified dinosaurs and uses standard costing. Actual data relating to January and February 2021 are as follows: Unit data: Beginning inventory Production January February 500 350 150 500 Sales 650 Direct material cost is P67 per unit, Direct labor is P15 per unit, and variable overhead is P18 per unit. Annual fixed manufacturing costs is P240,000 while monthly marketing cost is P6,000. Variable selling and administrative cost per unit is P30 per unit. The selling price per dinosaur is P240. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.