Berti Corporation manufactures and sells a single product. Cost data for theproduct are given below:Variable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeTotal variable cost per unitFixed costs per month:Fixed manufacturing overheadFixed selling and administrative_Total fixed cost per month$152056$46$900,000200,000$1.100.000The product sells for $150 per unit. Production and sales data for Septemberfollow:There was no beginning inventory.UnitsProduced30,000Required:a) Determine the unit product cost under:Absorption costingVariable costingUnitsSold22,000b) Prepare a variable costing income statement for September.c) Prepare an absorption costing income statement for September.d) Explain why the operating income is different in parts (a) and (b).

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Answered: Berti Corporation manufactures and…

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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