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Using variable costing, what is the unit product cost for both years?

Using variable costing, what is the unit product cost for both years?

FINANCIAL ACCOUNTING
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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  1. Using variable costing, what is the unit product cost for both years?
A Week 4 Assignment A. Bookshelf - Managerial Accounti x a VitalSource Bookshelf: Manageria X + A online.vitalsource.com/#/books/9781259995484/cfi/6/32!/4/2/64/2/24/2/2@0:49.9 Icai I Icai 2 Sales (@ $25 per unit). $1,000,000 $1,250,000 A < Chapter 6 Variable C... Cost of goods sold (@ $18 per unit). Gross margin 720,000 900.000 280.000 350,000 Go to Chapter 6 Variable Costing and Segment Reporting: Tool... Selling and administrative expenses*. 210,000 230,000 Net operating income $ 70,000 $ 120,000 Review Problem 2: Segmented 281 Income Statements *$2 per unit variable; $130,000 fixed each year. 282 Glossary page 294 Questions The company's $18 unit product cost is computed as follows: 283 Direct materials. $ 4 283 Applying Excel Direct labor. 7 Variable manufacturing overhead 1 285 The Foundational 15 Fixed manufacturing overhead ($270,000 - 45,000 units). Absorption costing unit product cost. 6 Exercises $18 286 293 Problems Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: 301 Çases Year 1 Year 2 Appendix 6A: Super-Variable Costing 303 Units produced 45,000 45,000 Units sold 40,000 50,000 307 Glossary (Appendix 6A) Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Appendix 6A: Exercises and 307 Problems 9:23 PM P Type here to search 10/15/2020
Transcribed Image Text:A Week 4 Assignment A. Bookshelf - Managerial Accounti x a VitalSource Bookshelf: Manageria X + A online.vitalsource.com/#/books/9781259995484/cfi/6/32!/4/2/64/2/24/2/2@0:49.9 Icai I Icai 2 Sales (@ $25 per unit). $1,000,000 $1,250,000 A < Chapter 6 Variable C... Cost of goods sold (@ $18 per unit). Gross margin 720,000 900.000 280.000 350,000 Go to Chapter 6 Variable Costing and Segment Reporting: Tool... Selling and administrative expenses*. 210,000 230,000 Net operating income $ 70,000 $ 120,000 Review Problem 2: Segmented 281 Income Statements *$2 per unit variable; $130,000 fixed each year. 282 Glossary page 294 Questions The company's $18 unit product cost is computed as follows: 283 Direct materials. $ 4 283 Applying Excel Direct labor. 7 Variable manufacturing overhead 1 285 The Foundational 15 Fixed manufacturing overhead ($270,000 - 45,000 units). Absorption costing unit product cost. 6 Exercises $18 286 293 Problems Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings. Production and cost data for the first two years of operations are: 301 Çases Year 1 Year 2 Appendix 6A: Super-Variable Costing 303 Units produced 45,000 45,000 Units sold 40,000 50,000 307 Glossary (Appendix 6A) Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year. Appendix 6A: Exercises and 307 Problems 9:23 PM P Type here to search 10/15/2020
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