The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

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Answer 1

Question

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

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Answer 2

Question

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

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Answer 3

Question

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

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Answer 4

Question

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

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Answer 5

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

Answer 6

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

Answer 7

Chapter 6, Problem 25P

To determine

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

Answer 8

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

Answer 9

To determine

Reconcile the variable costing and absorption costing net operating income for each year.

Answer 10

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

Answer 11

To determine

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

Answer 12

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

Answer 13

To determine

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

Answer 14

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

Answer 15

To determine

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

Answer 16

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

Answer 17

To determine

To compute: The operating income of the company under absorption costing with the help of lean accounting.

Answer 18

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Answer 29

Ch. 6.A - Prob. 1E Ch. 6.A - EXERCISE 6A-2 Super-Variable Costing and Variable...Ch. 6.A - Prob. 3E Ch. 6.A - PROBLEM 6A-4 Super-Variable Costing and Variable...Ch. 6.A - Prob. 5P Ch. 6 - Prob. 1Q Ch. 6 - Are selling and administrative expenses treated as...Ch. 6 - Explain how fixed manufacturing overhead costs are...Ch. 6 - What are the arguments in favor of treating fixed...Ch. 6 - What are the arguments in favor of treating fixed...

The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

To compute: The unit production cost in each year under absorption costing method. And segregate the variable and fixed cost.

Reconcile the variable costing and absorption costing net operating income for each year.

To explain: With the help of absorption costing statement given in question the operating income of year 2 is higher than the operating income of year 1 as the sold units are less than the year 1.

To explain: The reason why company suffered a loss in year 3 as it has profit in year 1 and the number of unit sold is same in year 1 and in year 3.

To explain: If company uses lean production, how operation is differed in year 2 and in year 3 and the ending inventory is zero.

To compute: The operating income of the company under absorption costing with the help of lean accounting.

Chapter 6 Solutions