(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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A company had an income of $60,000 using absorption costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was $3.00 per unit, what was the income using variable costing? A. $75,000. B. $60,000. C. $45,000. D. Not sufficient information to determine.

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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.