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

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Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 30 per unit Direct labor $ 50 per unit Variable overhead $ 20 per unit Fixed overhead $ 8,400,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,750,000 per year Units produced 105,000 units Units sold 75,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.
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
Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 40 per unit Direct labor $ 60 per unit Variable overhead $ 40 per unit Fixed overhead $ 6,600,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,000,000 per year Units produced 110,000 units Units sold 80,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.
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Denton Company manufactures and sells a single product. Cost data for the product are given: 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 July August The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 27,000 27,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 108,000 172,000 $ 280,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. $ 5 11 3 2 $ 21 Units Sold 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August $ 1,104,000 $ 1,488,000 529,000 575,000 218,000 $ 357,000 713,000 775,000 234,000…
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Variable Costing Income Statement On April 30, the end of the first month of operations, Jopl 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 (4,600 units) Cost of goods sold: Cost of goods manufactured (5,200 units) Inventory, April 30 (700 units) Total cost of goods sold Gross profit Selling and administrative expenses Operating income Joplin Company Variable Costing Income Statement For the Month Ended April 30 Variable cost of goods sold: If the fixed manufacturing costs were $29,484 and the fixed selling and administrative expenses were $12,590, prepare an income statement according to the variable costing concept. Round all final answers to whole dollars. 1:110 $109,200 (14,700) Fixed costs: $138,000 (94,500) $43,500 (25,700) $17,800