Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 11,200 10,100 $100,800 $3 $12 $28 $207,100 per unit per unit per unit. $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.
Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 11,200 10,100 $100,800 $3 $12 $28 $207,100 per unit per unit per unit. $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 3E: Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began...
Related questions
Question
![Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture
a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below:
Beginning inventory
Units produced
Units sold
Manufacturing costs
Fixed overhead
Variable overhead
Direct labour
Direct material
Selling and administrative costs
Fixed
Variable
0 units
11,200
10,100
$100,800
$3
$12
$28
$207,100
per unit.
per unit
per unit
$3 per unit sold
The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income
statement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F021a56b2-5078-4c9c-9dfa-130f2d7f5943%2Fe263f03e-a89a-43b1-ab59-865a2d07cff2%2F3q3zk6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture
a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below:
Beginning inventory
Units produced
Units sold
Manufacturing costs
Fixed overhead
Variable overhead
Direct labour
Direct material
Selling and administrative costs
Fixed
Variable
0 units
11,200
10,100
$100,800
$3
$12
$28
$207,100
per unit.
per unit
per unit
$3 per unit sold
The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income
statement.
![(b)
Reconcile the difference in net income between the absorption-costing and variable-costing methods.
Variable costing operating income
Fixed manufacturing overhead costs deferred in ending inventory
Absorption costing operating income.
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F021a56b2-5078-4c9c-9dfa-130f2d7f5943%2Fe263f03e-a89a-43b1-ab59-865a2d07cff2%2F8a1k66d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b)
Reconcile the difference in net income between the absorption-costing and variable-costing methods.
Variable costing operating income
Fixed manufacturing overhead costs deferred in ending inventory
Absorption costing operating income.
$
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Introduce to income statement
VIEWStep 2: Working for sales revenue and selling and administrative expenses
VIEWStep 3: Working for net operating income under absorption costing
VIEWStep 4: Working for net operating income under variable costing
VIEWStep 5: Working for fixed manufacturing overhead deffered in inventory
VIEWSolution
VIEWTrending now
This is a popular solution!
Step by step
Solved in 6 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning