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2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produce All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative C for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100

2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produce All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative C for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produced 190 units and sold 290 units for $190 each. All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100 MacBook Air Next
Transcribed Image Text:2. Haffner Company has 100 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting period, Haffner produced 190 units and sold 290 units for $190 each. All units incurred $95 in variable manufacturing costs and $30 in fixed manufacturing costs. Haffner also incurred $7,300 in Selling and Administrative Costs, all fixed. Calculate the operating income for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. Total product cost per unit Absorption costing Variable costing 125 95 Calculate the operating income for the year using absorption costing. Absorption costing Net Sales Revenue 55,100 Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. Variable costing Net Sales Revenue Variable Cost Contribution Margin Fixed Manufacturing Costs Fixed Selling and Administrative Expenses Operating Income 55,100 MacBook Air Next
for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. \table[[,\table[[Absorption], [costing]],\table[[Variable], [costing]]], [Total product cost per unit, 125, 95]] Calculate the operating income for the year using absorption costing. Absorption costing \table [[Net Sales Revenue], [55,100]] Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. \table[[Variable costing], [Net Sales Revenue], [Variable Cost], [Contribution Margin], [Fixed Manufacturing Costs], [Fixed Selling and Administrative Expenses], [Operating Income]]
Transcribed Image Text:for the year using absorption costing and variable costing. Calculate the total product cost per unit produced under absorption costing and under variable costing. \table[[,\table[[Absorption], [costing]],\table[[Variable], [costing]]], [Total product cost per unit, 125, 95]] Calculate the operating income for the year using absorption costing. Absorption costing \table [[Net Sales Revenue], [55,100]] Cost of Goods Sold Gross Profit Fixed Selling and Administrative Expenses Operating Income Calculate the operating income for the year using variable costing. \table[[Variable costing], [Net Sales Revenue], [Variable Cost], [Contribution Margin], [Fixed Manufacturing Costs], [Fixed Selling and Administrative Expenses], [Operating Income]]
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