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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 $ 90,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 256,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow July Units Produced 15,000 Units Sold 11,000 Sales cost of goods sold Grass margin Selling and administrative expenses Niet operating Income $5 10 Required: 1. Determine the unit product cost under & Absorption costing b. Variable costing 2 3 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $495,000 $455,000 255,000 437,000 242,000 199,000 418,000 223,000 $ 43,000 $ 195,000 5.20 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes

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 $ 90,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 256,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow July Units Produced 15,000 Units Sold 11,000 Sales cost of goods sold Grass margin Selling and administrative expenses Niet operating Income $5 10 Required: 1. Determine the unit product cost under & Absorption costing b. Variable costing 2 3 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $495,000 $455,000 255,000 437,000 242,000 199,000 418,000 223,000 $ 43,000 $ 195,000 5.20 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes

FINANCIAL ACCOUNTING
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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Subject - Accounting

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 July August Units Produced 15,000 15,000 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 $45 per unit. Production and sales data for July and August, the first two months of operations, follow Units Sold 11,000 19,000 $5 10 Sales Cost of goods sold. Grass margin Selling and administrative expenses Niet operating Income 2 Required: 1. Determine the unit product cost under a Absorption costing b. Variable costing. 3 5:20 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $ 835,000 437,000 $495,000 255,000 242,000 199,000 $ 43,000 $ 90,000 160,000 $ 256,000 418,000 223,000 $ 195,000 2. Prepare variable costing income statements for July and August 3. Reconcile the vanable 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 July August Units Produced 15,000 15,000 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 $45 per unit. Production and sales data for July and August, the first two months of operations, follow Units Sold 11,000 19,000 $5 10 Sales Cost of goods sold. Grass margin Selling and administrative expenses Niet operating Income 2 Required: 1. Determine the unit product cost under a Absorption costing b. Variable costing. 3 5:20 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $ 835,000 437,000 $495,000 255,000 242,000 199,000 $ 43,000 $ 90,000 160,000 $ 256,000 418,000 223,000 $ 195,000 2. Prepare variable costing income statements for July and August 3. Reconcile the vanable costing and absorption costing net operating incomes
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