Prepare Income statement for the month of December 2020 assuming absorption Costing and Variable Costing and state the reason for difference in income computed between absorption costing and variable costing. Go Green Bikes, which has only one product “Green Tiger Bikes", has provided thefollowing data concerning December 2020 operations:Selling priceUnits in beginning inventoryUnits producedUnits sold$714008,1008,200Units in ending inventory300Variable costs per unit:Direct materials$20Direct laborVariable manufacturing overheadVariable selling and administrative expense$15$6$4Fixed costs every month:Fixed manufacturing overheadFixed selling and administrative64,800$139,400The company produces the same number of units every month, although the sales in unitsvary from month to month. The company's variable costs per unit and total fixed costs havebeen constant from month to month. The unit product cost of November 2020 was:Absorption Costing$49Variable Costing$41

Under absorption costing system, selling and administrative expenses are not included to find the…

Go Green Bikes, which has only one product “Green Tiger Bikes", has provided the following data concerning December 2020 operations: Selling price Units in beginning inventory Units produced Units sold $71 400 8,100 8,200 Units in ending inventory 300 Variable costs per unit: Direct materials $20 $15 $6 $4 Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs every month: Fixed manufacturing overhead Fixed selling and administrative 64,800 $139,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. The unit product cost of November 2020 was: Absorption Costing $49 Variable Costing $41

Go Green Bikes, which has only one product “Green Tiger Bikes", has provided the following data concerning December 2020 operations: Selling price Units in beginning inventory Units produced Units sold $71 400 8,100 8,200 Units in ending inventory 300 Variable costs per unit: Direct materials $20 $15 $6 $4 Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs every month: Fixed manufacturing overhead Fixed selling and administrative 64,800 $139,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. The unit product cost of November 2020 was: Absorption Costing $49 Variable Costing $41

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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