Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative $ 135,000 169,000 Total fixed cost per month $ 304,000 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 27,000 27,000 Units Sold 23,000 31,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $4 9 4 1 $18 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $ 1,242,000 $1,674,000 506,000 736,000 192,000 $544,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 7 Dranare variable cortinn Income statemente for the and Aunet 682,000 992,000 200,000 $ 792,000

Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative $ 135,000 169,000 Total fixed cost per month $ 304,000 The product sells for $54 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 27,000 27,000 Units Sold 23,000 31,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $4 9 4 1 $18 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August $ 1,242,000 $1,674,000 506,000 736,000 192,000 $544,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 7 Dranare variable cortinn Income statemente for the and Aunet 682,000 992,000 200,000 $ 792,000

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Description: Please do not give solution in image format thanku Required:1. Determine the unit product cost under:a. Absorption costing.b. Variable costing.2. Prepare variable costing income statements for July and August.3. Reconcile the variable costing and abs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
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