(a) Unit Product Cost and Income Statement under Super-Variable costing method for two years. Super-Variable Costing: In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

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Answer 1

Question

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

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Chapter 18 Homework i Saved 15 Exercise 18-14 (Algo) Contribution margin income statement LO C2 1 points eBook Hint Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Variable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 39,800 $ 198 Ask Sales Variable costs 39,800 Print Contribution margin 39,800 Fixed costs Income References Mc Graw Hill $ 7,880,400 138 5,492,400 2,388,000 628,000 $ 1,760,000 Help Save & Exit Submit Check my work

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Answer 2

Question

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Expert Solution & Answer

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Answer 3

Question

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Expert Solution & Answer

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Answer 5

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Answer 6

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

Answer 7

Chapter 6.A, Problem 3E

To determine

(a)

Unit Product Cost and Income Statement under Super-Variable costing method for two years.

Super-Variable Costing:

In this costing method, only direct materials are considered as unit product costs and all other expenses are treated as period costs and charged completely in the year of manufacture. This means that opening inventory and ending inventory is valued at only direct material cost.

Answer 8

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

Answer 9

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method for two years.

Variable Costing:

In this method of costing, all the variable manufacturing cost are treated as part of unit product cost i.e. direct material, direct labor and variable manufacturing overhead are included in unit product cost. Fixed overheads and selling expenses are treated as period cost. Here, the opening inventory and ending inventory is valued at variable cost of manufacturing.

Answer 10

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Answer 11

To determine

(c)

Reconciliation of Net Operating Income under above two methods for two years.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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...

(c) Reconciliation of Net Operating Income under above two methods for two years.

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Chapter 6 Solutions

(c)

Reconciliation of Net Operating Income under above two methods for two years.