Sam Darnold Company produces a single product called INT6, this company has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The company pro $ $ $ $ 138 395 6,728 6,870 245 48 21 3 19 $147,840 $103,050
Sam Darnold Company produces a single product called INT6, this company has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The company pro $ $ $ $ 138 395 6,728 6,870 245 48 21 3 19 $147,840 $103,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Sam Darnold Company produces a single product called INT6, this company has provided the following data
concerning its most recent month of operations:
Selling price
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative expense
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative expense
$
$
$
Required A Required B.
130
395
Complete this question by entering your answers in the tabs below.
Variable expenses
6,728
6,870
245
48
21
3
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.
19
$147,840
$103,050
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.
Prepare a contribution format income statement for the month using variable costing.
Variable Costing Income Statement
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