Calculate the product cost per game produces under absorption costing and under variable costing.

Question

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Answer 1

Question

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

2. a

To determine

Prepare income statement for October and November under absorption costing.

b.

To determine

Prepare income statement for October and November under variable costing.

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

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Students have asked these similar questions

Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: Production (manufacturing costs) - $3.50 per t-shirt Selling & administration - $1.00 per t-shirt Fixed costs: Production (manufacturing costs) - $1,000,000 per year Selling & administration - $2,000,000 per year During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?

ROE?

ANSWER THIS GENERAL ACCOUNTING PROBLEM

Answer 2

Question

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

2. a

To determine

Prepare income statement for October and November under absorption costing.

b.

To determine

Prepare income statement for October and November under variable costing.

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

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Answer 3

Question

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

2. a

To determine

Prepare income statement for October and November under absorption costing.

b.

To determine

Prepare income statement for October and November under variable costing.

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

2. a

To determine

Prepare income statement for October and November under absorption costing.

b.

To determine

Prepare income statement for October and November under variable costing.

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

2. a

To determine

Prepare income statement for October and November under absorption costing.

b.

To determine

Prepare income statement for October and November under variable costing.

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

Answer 6

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

Answer 7

Chapter 21, Problem 28AP

1.

To determine

Calculate the product cost per game produces under absorption costing and under variable costing.

Answer 8

2. a

To determine

Prepare income statement for October and November under absorption costing.

Answer 9

2. a

To determine

Prepare income statement for October and November under absorption costing.

Answer 10

b.

To determine

Prepare income statement for October and November under variable costing.

Answer 11

b.

To determine

Prepare income statement for October and November under variable costing.

Answer 12

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

Answer 13

3.

To determine

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

Answer 14

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

Answer 15

4.

To determine

Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QC Ch. 21 - Prob. 2QC Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...

Calculate the product cost per game produces under absorption costing and under variable costing.

Solution Summary: The author explains how to calculate the product cost per game produced under absorption and variable costing. The gross profit is the difference between net sales revenue and cost of goods sold, and the operating income is calculated by deducting the selling

Calculate the product cost per game produces under absorption costing and under variable costing.

Prepare income statement for October and November under absorption costing.

Prepare income statement for October and November under variable costing.

State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.

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Chapter 21 Solutions