Homework Help is Here – Start Your Trial Now!
Business
Accounting
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials O Direct labor Units Produced 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 $47 per unit. Production and sales data for July and August, the first two months of operations, follow. 18,000 18,000 $5 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 9 2 3 $ 19 Units Sold 14,000 22,000 $ 54,000 175,000 $ 229,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August August $ 1,034,000 July $ 658,000 266,000 392,000 217,000 $ 175,000 Required: Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 418,000 616,000 241,000 $375,000

Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials O Direct labor Units Produced 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 $47 per unit. Production and sales data for July and August, the first two months of operations, follow. 18,000 18,000 $5 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 9 2 3 $ 19 Units Sold 14,000 22,000 $ 54,000 175,000 $ 229,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August August $ 1,034,000 July $ 658,000 266,000 392,000 217,000 $ 175,000 Required: Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 418,000 616,000 241,000 $375,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question


please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)

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 Units Produced The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow. 18,000 18,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $5 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 9 2 3 $19) $ 54,000 175,000 $ 229,000 Units Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August July $ 658,000 266,000 392,000 217,000 $ 175,000 August $ 1,034,000 418,000 616,000 241,000 $ 375,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.
Transcribed Image Text: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 Units Produced The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow. 18,000 18,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $5 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 9 2 3 $19) $ 54,000 175,000 $ 229,000 Units Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August July $ 658,000 266,000 392,000 217,000 $ 175,000 August $ 1,034,000 418,000 616,000 241,000 $ 375,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS