(a) Unit Product Cost and Income Statement under Super-Variable costing method. 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 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you solve this general accounting problem using appropriate accounting principles?

General accounting question

Smith plc commenced two projects on 1 January 2023. The following details relate to them as at 31 December 2023. Cost to date Progress billings invoiced Progress billings received Estimated future costs Estimated final contract price Project 1 Project 2 ₤'000 ₤'000 380 110 290 70 210 55 120 320 650 430 Smith plc uses the percentage completion method based on costs (cost to date/total costs) to account for construction contracts. The policy of Smith plc is that project outcomes can only be reliably measured when a project is at least 35% complete. Required a. Illustrate the five-step method under the IFRS 15 Revenue from Contracts with Customers.

Answer 2

Question

Chapter 6.A, Problem 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6.A, Problem 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6.A, Problem 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6.A, Problem 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Answer 6

Chapter 6.A, Problem 5P

To determine

(a)

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

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 5P

To determine

(a)

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

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.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

Answer 9

To determine

(b)

Unit Product Cost and Income Statement under Variable costing method.

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, opening inventory and the ending inventory is valued at variable cost of manufacturing.

Answer 10

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

Answer 11

To determine

(c)

Unit Product Cost and Income Statement under Absorption costing method.

Absorption Costing:

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

Answer 12

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

Answer 13

To determine

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

Answer 14

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Answer 15

To determine

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

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...

(d) Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

(e) Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.

Want to see the full answer?

Chapter 6 Solutions

(d)

Reconciliation of Net Operating Income between Super - Variable costing method and Variable costing method.

(e)

Reconciliation of Net Operating Income between Super - Variable costing method and Absorption costing method.