(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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Solve my problem

Solution of all problems

Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added Direct labour Production overheads $272,000 $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 Direct material added Conversion costs 100% 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% 40% Conversion costs There were no unfinished goods in process 2 at the…

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 6 Solutions

(c)

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