Address the question in the picture. Wiengot Antennas, Inc. produces and sells a unique type of TV antenna; The company has just opened a new plant tomanufacture the antenna and the following cost and revenue data have been provided for the first month of the plant'soperation in the form of a worksheet.AB1 Beginning inventory2 Units produced40,0003 Units sold35,0004 Selling price per unit$6056 Selling and administrative expenses:Variable per unit7$2Fixed (total)$560,0009 Manufacturing costsDirect materials cost per unit10$1511Direct labor cost per unit$7$2Variable manufacturing overhead cost per unitFixed manufacturing overhead cost (total)1213$640,00014K 1 Sheeti Sheet2Sheet3Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked thatan income statement be prepared for the month. Required:1. Assume that the company uses absorption costing.a. Determine the unit product cost.b. Prepare an income statement for the month.2. Assume that the company uses variable costing.a. Determine the unit product cost.b. Prepare a contribution format income statement for the month.3. Explain the reason for any difference in the ending inventory balances under the two costing methods and the impact ofthis difference on reported net operating income.

Cost Accounting involves three systems of valuation i.e. Absorption costing, Activity Based Costing…

Wiengot Antennas, Inc. produces and sells a unique type of TV antenna; The company has just opened a new plant to manufacture the antenna and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet. A B 1 Beginning inventory 2 Units produced 3 Units sold 40,000 35,000 4 Selling price per unit $60 5 6 Selling and administrative expenses: Variable per unit Fixed (total) 9 Manufacturing costs 7 $2 8 $560,000 10 Direct materials cost per unit $15 $7 $2 11 Direct labor cost per unit 12 Variable manufacturing overhead cost per unit 13 Fixed manufacturing overhead cost (total) $640,000 14 4M Sheet1 Sheet2 Sheet3 Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.

Wiengot Antennas, Inc. produces and sells a unique type of TV antenna; The company has just opened a new plant to manufacture the antenna and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet. A B 1 Beginning inventory 2 Units produced 3 Units sold 40,000 35,000 4 Selling price per unit $60 5 6 Selling and administrative expenses: Variable per unit Fixed (total) 9 Manufacturing costs 7 $2 8 $560,000 10 Direct materials cost per unit $15 $7 $2 11 Direct labor cost per unit 12 Variable manufacturing overhead cost per unit 13 Fixed manufacturing overhead cost (total) $640,000 14 4M Sheet1 Sheet2 Sheet3 Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.

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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