**Berti Corporation Product Cost Analysis**Berti Corporation manufactures and sells a single product. Below is a breakdown of the cost data for the product:**Variable Costs per Unit:**- Direct materials: $15- Direct labor: $20- Variable manufacturing overhead: $5- Variable selling and administrative: $6- **Total variable cost per unit: $46****Fixed Costs per Month:**- Fixed manufacturing overhead: $900,000- Fixed selling and administrative: $200,000- **Total fixed cost per month: $1,100,000****Sales Information:**- Selling price per unit: $150- Units produced in September: 30,000- Units sold in September: 22,000There was no beginning inventory.**Required Tasks:**a) Determine the unit product cost under: - Absorption costing - Variable costingb) 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).**Explanation of Costing Methods:**- **Absorption Costing** includes all manufacturing costs (both fixed and variable) in the cost of a unit of product.- **Variable Costing** includes only variable manufacturing costs in the unit product cost, treating fixed manufacturing costs as period expenses.### Graphical Explanation (if any diagrams were present):There are no diagrams present in the text provided.

The overall cost of a manufacturing run is divided by the number of units that are produced to…

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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The Dorset Corporation produces 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 0 30,300 24,700 $ 465 $ 25 Fixed per year $ 469,300 Manufacturing costs: Direct materials cost per unit $ 211 Direct labor cost per unit $ 53 Variable manufacturing overhead cost per unit $ 36 $ 454,500 Fixed manufacturing overhead per year 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. c. Prepare an income statement for the year using variable costing. 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. Required A Required B Required C Required D Prepare an…
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