Please do not give solution in image format thanku Required 1 Required 2Redo the company's income statement in the contribution format using variable costing.Whitman CompanyVariable Costing Income StatementRequired fRequired 1 Required 2$Direct materials.Direct laborVariable manufacturing overheadFixed manufacturing overhead ($276,000 46,000 units)Absorption costing unit product cost00Variable costing net operating income0Absorption costing net operating incomeRequired 2 >Required:1. Redo the company's income statement in the contribution format using variable costing.2. Reconcile any difference between the net operating income on your variable costing income statement and the net operatingincome on the absorption costing income statement above.Complete this question by entering your answers in the tabs below.$ 105< Required 1$ 24Reconcile any difference between the net operating income on your variable costing income statement and the net operatingincome on the absorption costing income statement above. (Enter any losses or deductions as a negative value.)Reconciliation of Variable Costing and Absorption Costing Net Operating IncomesRequired 2 > Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the yearfollows:Whitman CompanyIncome StatementSales (41,000 units x $41.10 per unit)Cost of goods sold (41,000 units $24 per unit)Gross marginSelling and administrative expensesNet operating income$ 1,685,100984,000701,100471,500$ 229,600The company's selling and administrative expenses consist of $307,500 per year in fixed expenses and $4 per unit sold in variableexpenses. The $24 unit product cost given above is computed as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overhead ($276,000 46,000 units)Absorption costing unit product cont$105$24Required:1. Redo the company's income statement in the contribution format using variable costing.2. Reconcile any difference between the net operating income on your variable costing income statement and the net operatingincome on the absorption costing income statement above.Complete this question by entering your answers in the tabs below.

calculation of net operating income under variable costing system and reconciliation between…

Direct materials Direct labor I Variable manufacturing overhead Fixed manufacturing overhead ($276,000 46,000 units) Absorption costing unit product cost $ 10 3 6 $ 24 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.)

Direct materials Direct labor I Variable manufacturing overhead Fixed manufacturing overhead ($276,000 46,000 units) Absorption costing unit product cost $ 10 3 6 $ 24 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statement above. (Enter any losses or deductions as a negative value.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (42,000 units x $43.60 per unit) Cost of goods sold (42,000 units x $23 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,831, 200 966,000 865,200 483,000 $ 382,200 The company's selling and administrative expenses consist of $315,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $23 unit product cost given above is computed as follows: Direct materials. Direct labor $ 10 4 Variable manufacturing overhead 3 Fixed manufacturing overhead ($276,000 46,000 units) 6 Absorption costing unit product cost $ 23 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption…
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,000 units x $42.60 per unit) Cost of goods sold (39,000 units × $25 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,661,400 975,000 686,400 487,500 $ 198,900 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $5 per unit sold in variable expenses. The $25 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($240,000 ÷ 48,000 units) Absorption costing unit product cost $11 5 4 5 $ 25 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption…
Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year follows: Whitman CompanyIncome Statement Sales (39,000 units × $43.10 per unit) $ 1,680,900 Cost of goods sold (39,000 units × $24 per unit) 936,000 Gross margin 744,900 Selling and administrative expenses 448,500 Net operating income $ 296,400 The company’s selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $24 unit product cost given above is computed as follows: Direct materials $ 12 Direct labor 4 Variable manufacturing overhead 3 Fixed manufacturing overhead ($255,000 ÷ 51,000 units) 5 Absorption costing unit product cost $ 24 Required: 1. Redo the company’s income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net…
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (38,000 units x $44.60 per unit) Cost of goods sold (38,000 units × $24 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,694,800 912,000 782,800 475,000 $ 307,800 The company's selling and administrative expenses consist of $285,000 per year in fixed expenses and $5 per unit sold in variable expenses. The $24 unit product cost given above is computed as follows: Direct materials Variable manufacturing overhead $ 10 Direct labor 4 4 Fixed manufacturing overhead ($294,000 ÷ 49,000 units) 6 $ 24 Absorption costing unit product cost Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption…
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (39,000 units x $43.10 per unit) Cost of goods sold (39,000 units x $22 per unit) Gross margin Selling and administrative expenses $ 1,680,900 858,000 822,900 448,500 Net operating income $ 374,400 The company's selling and administrative expenses consist of $292,500 per year in fixed expenses and $4 per unit sold in variable expenses. The $22 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($255,000÷ 51,000 units) Absorption costing unit product cost $22 Required: 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income…
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year follows: Whitman Company Income Statement Sales (40,000 units x $44.60 per unit) Cost of goods sold (40,000 units x $22 per unit) Gross margin Selling and administrative expenses Net operating income $ 1,784,000 880,000 904,000 460,000 $ 444,000 The company's selling and administrative expenses consist of $300,000 per year in fixed expenses and $4 per unit sold in variable expenses. The $22 unit product cost given above is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead ($180,000 + 45,000 units) Absorption costing unit product cost Required: $ 10 5 3 4 $ 22 1. Redo the company's income statement in the contribution format using variable costing. 2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption…
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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follws: Year 2 Sales (e $64 per unit) Cost of goods sold (e $37 per unit) Gross margin Selling and administrative expenses Year 1 $ 1,152, 000 $ 1,792, 000 666, 000 486, 000 301, 000 $ 185, 000 1,836, 000 756, 000 331, 000 $ 425, 000 Net operating incone •$3 per unit varlable, $247,000 fixed each year. The company's $37 unit product cost is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufactüring overhead ($391, 00e + 23, 000 units) $ 6 10 4. 17 $ 37 Absorption costing unit product cost Production and cost data for the first two years of operations are: Units produced Units sold Year 1 23, 000 18, 000 Year 2 23, 000 28, 000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the…