Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Month (a) March April May (b) Other related actual data: Beginning Production Inventory 0 600 600 REQUIRED: Manufacturing cost per unit produced .. Marketing cost per unit sold. 3,000 2,600 3,300 Sales Fixed Manufacturing costs per month .........…... Fixed Operating & marketing costs per month.... Selling price per unit........ (i) (ii) 2,400 2,600 3,450 The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing. $550 $200 $320,000 $95,000 $1,700 Prepare income statements for Haitek in March, April and May 2021 under variable costing absorption costing Explain the difference in operating income for March, April and May under variable costing and absorption costing.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to
March, April and May 2021 are as follows:
Month
(a)
March
April
May
(b)
Beginning Production
Inventory
0
600
600
Other related actual data:
REQUIRED:
3,000
2,600
3,300
Manufacturing cost per unit produced ..
Marketing cost per unit sold.
Sales
2,400
2,600
3,450
Fixed Manufacturing costs per month .........…...
Fixed Operating & marketing costs per month....
Selling price per unit........
The budgeted level of production used to calculate the predetermined fixed manufacturing cost
per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in
production volume is charged to the cost of goods sold of the month it occurs. Assume there is
no other variances related to fixed manufacturing.
$550
$200
$320,000
$95,000
$1,700
Prepare income statements for Haitek in March, April and May 2021 under
(i) variable costing
(ii)
absorption costing
Explain the difference in operating income for March, April and May under variable
costing and absorption costing.
Transcribed Image Text:Haitek Bhd manufactures and sells home-freezer and uses standard costing. Actual data relating to March, April and May 2021 are as follows: Month (a) March April May (b) Beginning Production Inventory 0 600 600 Other related actual data: REQUIRED: 3,000 2,600 3,300 Manufacturing cost per unit produced .. Marketing cost per unit sold. Sales 2,400 2,600 3,450 Fixed Manufacturing costs per month .........…... Fixed Operating & marketing costs per month.... Selling price per unit........ The budgeted level of production used to calculate the predetermined fixed manufacturing cost per unit is 3,000 units. Any under/over applied fixed manufacturing cost due to change in production volume is charged to the cost of goods sold of the month it occurs. Assume there is no other variances related to fixed manufacturing. $550 $200 $320,000 $95,000 $1,700 Prepare income statements for Haitek in March, April and May 2021 under (i) variable costing (ii) absorption costing Explain the difference in operating income for March, April and May under variable costing and absorption costing.
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