Fixed cost: Fixed Manufacturing overhead Rs 40,000 Fixed Selling & Administrative Rs 60,000 Selling Price per unit Rs 100 Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10 Variable Manufacturing overhead Rs 5 Variable Selling & Administrative Rs 2 Units In beginning Inventory 0 Units Produced 2000 Units sold 1900 1. Compute the unit product cost under both absorption and variable costing. 2.. Prepare an income statement for the year using absorption costing. 3.. Prepare a contribution format income statement for the year using variable costing.
Fixed cost: Fixed Manufacturing overhead Rs 40,000 Fixed Selling & Administrative Rs 60,000 Selling Price per unit Rs 100 Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10 Variable Manufacturing overhead Rs 5 Variable Selling & Administrative Rs 2 Units In beginning Inventory 0 Units Produced 2000 Units sold 1900 1. Compute the unit product cost under both absorption and variable costing. 2.. Prepare an income statement for the year using absorption costing. 3.. Prepare a contribution format income statement for the year using variable costing.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
Related questions
Question
100%
|
Fixed cost: |
|
|
Fixed Manufacturing overhead |
Rs 40,000 |
|
Fixed Selling & Administrative |
Rs 60,000 |
|
|
|
|
Selling Price per unit |
Rs 100 |
|
|
|
|
Variable cost per unit: |
|
|
Direct Materials |
Rs 30 |
|
Direct labor |
Rs 10 |
|
Variable Manufacturing overhead |
Rs 5 |
|
Variable Selling & Administrative |
Rs 2 |
|
|
|
|
Units In beginning Inventory |
0 |
|
Units Produced |
2000 |
|
Units sold |
1900 |
| 1. Compute the unit product cost under both absorption and variable costing. |
| 2.. Prepare an income statement for the year using absorption costing. |
| 3.. Prepare a contribution format income statement for the year using variable costing. |
| 4.. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,