Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost. The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable. Requirement 1 To determine: The product cost under cost absorption costing and under variable costing.

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Answer 1

Question

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

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Hunger Games Corporation has had a defined benefit pension plan for three decades. Two years ago, the company improved the benefits at a cost of $2,800,000. Pension plan assets were $84,000,000 while pension obligations were $76,000,000 at the beginning of the year. For the current year, Hunger Games 's pension plan incurred current service cost of $6,400,000 and interest of $8,600,000. The pension's assets earned $9,000,000, which is $400,000 below expectations. There were no actuarial gains or losses for the year. Required Compute the pension expense for the year. Record the journal entries for Hunger Games's pension plan.

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Answer 2

Question

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Answer 6

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

Answer 7

Chapter 21, Problem P21A.67BPGB

To determine

Income Statements under variable and absorption costing: There are two different ways to prepare income statement. The conventional way which is generally seen in the financial statement as well is preparing income statement under absorption costing. In the absorption costing, there is not segregation of the costs on the basis of fixed costs and variable cost.

The other way to prepare income statement is variable costing. Under this method or costing, the expenses are segregated on the basis of fixed and variable.

Requirement 1

To determine:

The product cost under cost absorption costing and under variable costing.

Answer 8

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

Answer 9

To determine

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

Answer 10

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

Answer 11

To determine

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

Answer 12

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Answer 13

To determine

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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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

Requirement 2: To prepare: Income statements for October and November under – a. Absorption costing b. Variable costing

Requirement 3: To determine: Higher Operating income for October and November under absorption costing and variable costing.

Requirement 4: To determine: The ending inventory in October and November under absorption costing and variable costing.

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Chapter 21 Solutions

Requirement 2:

To prepare:

Income statements for October and November under –

a. Absorption costing

b. Variable costing

Requirement 3:

To determine:

Higher Operating income for October and November under absorption costing and variable costing.

Requirement 4:

To determine:

The ending inventory in October and November under absorption costing and variable costing.