Question 5.1Stark and Company would like to evaluate one of the product lines that they sell to the defensedepartment. Every month the Stark and Company produce an identical number of units, although thesales in units differ from month to month.Selling priceUnits in beginning inventory$105110Units produced6,400Units sold6,100Units in ending inventoryVariable costs per unit:410Direct materials$62Direct labour$48Variable manufacturing overheadVariable selling and administrativeFixed costs:$3$7Fixed manufacturing overheadFixed selling and administrative$64,000$35,600Submission Instructions:1. Under variable costing, identify the unit product cost for the month.2. What is the unit product cost for the month under absorption costing?3. Prepare an income statement for the month using the contribution format and thevariable costing method.4. Prepare an income statement for the month using the absorption costing method.

Question 5.1 Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price Units in beginning inventory Units produced $105 110 6,400 6,100 Units sold Units in ending inventory Variable costs per unit: 410 Direct materials 562 Direct labour $48 Variable manufacturing overhead 53 $7 Variable selling and administrative Fixed costs: S64,000 S35,600 Fixed manufacturing overhead Fixed selling and administrative Submission Instructions: 1 Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method.

Question 5.1 Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price Units in beginning inventory Units produced $105 110 6,400 6,100 Units sold Units in ending inventory Variable costs per unit: 410 Direct materials 562 Direct labour $48 Variable manufacturing overhead 53 $7 Variable selling and administrative Fixed costs: S64,000 S35,600 Fixed manufacturing overhead Fixed selling and administrative Submission Instructions: 1 Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method.

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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