Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income. Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income. Requirement-1: To Calculate: The Product cost per game under Absorption costing and Variable costing methods

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General accounting question What is return on equity?

General accounting question

What is the gross profit on this sale?

Answer 2

Question

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Answer 6

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

Answer 7

Chapter 21, Problem P21.55APGA

To determine

Concept Introduction:

Variable costing: Variable costing is one of the methods of calculation of product costs. Under this method, only the variable manufacturing costs are considered as part of the product cost. Under this method, the income statement calculates contribution margin and net operating income.

Absorption costing: Absorption costing is one of the methods of calculation of product costs. Under this method, the fixed manufacturing overheads are also considered as part of the product cost with direct costs. The unit product cost includes direct material, direct labor, and variable overhead and allocated amount of fixed overhead. Under this method, the income statement calculates Gross margin and net operating income.

Requirement-1:

To Calculate: The Product cost per game under Absorption costing and Variable costing methods

Answer 8

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Answer 9

To determine

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Answer 10

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Answer 11

To determine

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Answer 12

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Answer 13

To determine

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 21 - For Frank’s Funky Sounds, straight-line...Ch. 21 - Prob. 2QC Ch. 21 - Prob. 3QC Ch. 21 - Prob. 4QC Ch. 21 - Prob. 5QC Ch. 21 - On a CVP graph, the total cost line intersects the...Ch. 21 - If a company increases its sales price per unit...Ch. 21 - Prob. 8QC Ch. 21 - Prob. 9QC Ch. 21 - Prob. 10QC

Videos

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Want to see the full answer?

Chapter 21 Solutions

Videos

Requirement-2: To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-3: To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-4: To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference

Want to see the full answer?

Chapter 21 Solutions

Requirement-2:

To Prepare: The Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-3:

To identify: The Comparison of Monthly Income Statements for October and November under Absorption costing and Variable costing methods

Requirement-4:

To determine: The ending inventory balances for October and November under Absorption costing and Variable costing methods and explain the reason for the difference