Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit Direct materials S 162 Variable manufacturing overhead S 11 Fixed manufacturing overhead costs (total) $ 605,680 Selling and administrative costs: Variable 15 % of sales Fixed (total) $ 352, 560 Zurgot regards all of its workers as full- time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $538 each. During the first month of operations, the following activity was recorded: Units produced 4, 520 Units sold 3, 430 Required: 1. Compute the unit product cost under each of the following costing method. 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 3 Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 4. This part of the question is not part of your Connect assignment. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. PrevQuestion 6 of 6 Total6 of 6 Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, procee to the question map button.Next
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit Direct materials S 162 Variable manufacturing overhead S 11 Fixed manufacturing overhead costs (total) $ 605,680 Selling and administrative costs: Variable 15 % of sales Fixed (total) $ 352, 560 Zurgot regards all of its workers as full- time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $538 each. During the first month of operations, the following activity was recorded: Units produced 4, 520 Units sold 3, 430 Required: 1. Compute the unit product cost under each of the following costing method. 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 3 Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 4. This part of the question is not part of your Connect assignment. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. PrevQuestion 6 of 6 Total6 of 6 Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, procee to the question map button.Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A-5
Transcribed Image Text:Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select
hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit
Direct materials $ 162 Variable manufacturing overhead $ 11 Fixed manufacturing overhead costs (total) $ 605,680
Selling and administrative costs: Variable 15 % of sales Fixed (total) $352, 560 Zurgot regards all of its workers as full -
time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated
Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $538 each.
During the first month of operations, the following activity was recorded: Units produced 4, 520 Units sold 3, 430
Required: 1. Compute the unit product cost under each of the following costing method. 2. Prepare an income
statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) 3
Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces;
input a 0 wherever it is required.) 4. This part of the question is not part of your Connect assignment. 5. Reconcile the
absorption costing and variable costing operating income figures in (2) and (3) above. PrevQuestion 6 of 6 Total6 of 6
Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, procee
to the question map button.Next
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education