Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 174 Units in beginning inventory 0 Units produced 3,770 Units sold 3,450 Units in ending inventory 320 Variable costs per unit: Direct materials $ 47 Direct labor $ 57 Variable manufacturing overhead $ 16 Variable selling and administrative $ 11 Fixed costs: Fixed manufacturing overhead $ 113,100 Fixed selling and administrative $ 13,800 Required: a. What is the unit product cost for the month under variable costing? (Do not round intermediate calculations.) b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month.
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 174 Units in beginning inventory 0 Units produced 3,770 Units sold 3,450 Units in ending inventory 320 Variable costs per unit: Direct materials $ 47 Direct labor $ 57 Variable manufacturing overhead $ 16 Variable selling and administrative $ 11 Fixed costs: Fixed manufacturing overhead $ 113,100 Fixed selling and administrative $ 13,800 Required: a. What is the unit product cost for the month under variable costing? (Do not round intermediate calculations.) b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
Related questions
Question
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: |
Selling price | $ | 174 |
Units in beginning inventory | 0 | |
Units produced | 3,770 | |
Units sold | 3,450 | |
Units in ending inventory | 320 | |
Variable costs per unit: | ||
Direct materials | $ | 47 |
Direct labor | $ | 57 |
Variable manufacturing overhead | $ | 16 |
Variable selling and administrative | $ | 11 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 113,100 |
Fixed selling and administrative | $ | 13,800 |
|
Required: |
a. |
What is the unit product cost for the month under variable costing? (Do not round intermediate calculations.) |
|
b. |
What is the unit product cost for the month under absorption costing? |
|
c. |
Prepare a contribution format income statement for the month using variable costing. |
|
d. |
Prepare an income statement for the month using absorption costing. |
|
e. |
Reconcile the variable costing and absorption costing net operating incomes for the month. |
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
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
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
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning