(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

Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Just need the correct LOC? Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to…

When iuploading image then it get blurry Comment in comment section I will write data.

Correct answer please

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.