Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly foxed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February February January Less: Total product cost 70 1 all Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing Less Absorption Variable costing costing Less Absorption Variable costing costing Less Mark's Meals Income Statement (Absorption Costing) Month Ended January 31 Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended February 28 January 31 February 28 Data table Sales...... Production.. Variable manufacturing expense per meal. Sales commission expense per meal........ January February 1,600 meals 1.800 meals 2,000 meals 1,600 meals Print Total fixed manufacturing overhead......... $800 Total fixed marketing and administrative expenses.. $600 $3 $1 Done $3 $1 $800 $600 X
Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new monthly foxed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February February January Less: Total product cost 70 1 all Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing Less Absorption Variable costing costing Less Absorption Variable costing costing Less Mark's Meals Income Statement (Absorption Costing) Month Ended January 31 Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended February 28 January 31 February 28 Data table Sales...... Production.. Variable manufacturing expense per meal. Sales commission expense per meal........ January February 1,600 meals 1.800 meals 2,000 meals 1,600 meals Print Total fixed manufacturing overhead......... $800 Total fixed marketing and administrative expenses.. $600 $3 $1 Done $3 $1 $800 $600 X
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter7: Inventory Cost Flow Assumptions (fifolifo)
Section: Chapter Questions
Problem 9R: Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a...
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