TB Problem 05-212 Pabbatti Corporation, which has only one product ... Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 99 Units in beginning inventory 560 Units produced 2,190 Units sold 2,430 Units in ending inventory 320 Variable costs per unit: Direct materials $ 19 Direct labor $ 22 Variable manufacturing overhead $ 2 Variable selling and administrative $ 12 Fixed costs: Fixed manufacturing overhead $ 56,940 Fixed selling and administrative $ 7,290 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. (Hint: Use the reconciliation method.) Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing.
TB Problem 05-212 Pabbatti Corporation, which has only one product ... Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 99 Units in beginning inventory 560 Units produced 2,190 Units sold 2,430 Units in ending inventory 320 Variable costs per unit: Direct materials $ 19 Direct labor $ 22 Variable manufacturing overhead $ 2 Variable selling and administrative $ 12 Fixed costs: Fixed manufacturing overhead $ 56,940 Fixed selling and administrative $ 7,290 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. (Hint: Use the reconciliation method.) Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TB Problem 05-212 Pabbatti Corporation, which has only one product ...
Pabbatti Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ | 99 |
| Units in beginning inventory | 560 | |
| Units produced | 2,190 | |
| Units sold | 2,430 | |
| Units in ending inventory | 320 | |
| Variable costs per unit: | ||
| Direct materials | $ | 19 |
| Direct labor | $ | 22 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative | $ | 12 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 56,940 |
| Fixed selling and administrative | $ | 7,290 |
|
|
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. (Hint: Use the reconciliation method.)
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method.)
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