Unit Product cost under Absorption costing/ Variable costing: Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation . Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income. Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not. Requirement-A: The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

Question

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Answer 1

Question

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

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Answer 2

Question

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Answer 6

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

Answer 7

Chapter 21, Problem S21A.24SE

To determine

Unit Product cost under Absorption costing/ Variable costing:

Under Absorption costing, the Unit product cost is computed on the fact that all the product cost including the fixed manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the proportionate fixed manufacturing cost is deducted from the sales revenue while computing the gross profit and remaining proportionate fixed product cost become part of ending inventory valuation. Then after computing the gross profit, the total selling and other administrative expense shall be deducted for the period to arrive at the amount of net operating income.

Under Variable costing, the Unit product cost is computed on the fact that only the variable manufacturing cost shall be the part of unit product cost and will be used in the valuation of ending inventory of finished goods. Therefore, the total fixed manufacturing cost is deducted from the sales revenue while computing the net operating income irrespective of the fact that the all units produced have been sold or not.

Requirement-A:

The Computation of Unit Product cost and ending inventory valuation under Absorption costing.

Answer 8

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Answer 9

To determine

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

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Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.

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Chapter 21 Solutions

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Requirement-B: The Computation of Unit Product cost and Ending Valuation under variable costing.

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Chapter 21 Solutions

Requirement-B:

The Computation of Unit Product cost and Ending Valuation under variable costing.