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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 120 Units in beginning inventory 330 Units produced 6,010 Units sold 6,090 Units in ending inventory 250 Variable costs per unit: Direct materials $ 42 Direct labor $ 24 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 17 Fixed costs: Fixed manufacturing overhead $ 108,180 Fixed selling and administrative expense $ 97,440 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required Questions: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 120 Units in beginning inventory 330 Units produced 6,010 Units sold 6,090 Units in ending inventory 250 Variable costs per unit: Direct materials $ 42 Direct labor $ 24 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 17 Fixed costs: Fixed manufacturing overhead $ 108,180 Fixed selling and administrative expense $ 97,440 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required Questions: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing.

Cornerstones of Cost Management (Cornerstones Series)
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...
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Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

 

     
Selling price $ 120
Units in beginning inventory   330
Units produced   6,010
Units sold   6,090
Units in ending inventory   250
Variable costs per unit:    
Direct materials $ 42
Direct labor $ 24
Variable manufacturing overhead $ 2
Variable selling and administrative expense $ 17
Fixed costs:    
Fixed manufacturing overhead $ 108,180
Fixed selling and administrative expense $ 97,440
 

 

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

 

Required Questions:

a. Prepare a contribution format income statement for the month using variable costing.

b. Prepare an income statement for the month using absorption costing.

*See attached images for formatting of income statements

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 2$ 120 330 6,010 6,090 250 2$ $ $ 42 24 2 $ 17 expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $108,180 $ 97,440 expense The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below. Required Required A В Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Variable expenses: Fixed expenses:
Transcribed Image Text:Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 2$ 120 330 6,010 6,090 250 2$ $ $ 42 24 2 $ 17 expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $108,180 $ 97,440 expense The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below. Required Required A В Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Variable expenses: Fixed expenses:
Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 120 330 6,010 6,090 250 42 Direct labor 24 Variable manufacturing overhead Variable selling and administrative 2 17 expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $108,180 $ 97,440 expense The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below. Required Required A B Prepare an income statement for the month using absorption costing. Absorption Costing Income Statement %24
Transcribed Image Text:Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 120 330 6,010 6,090 250 42 Direct labor 24 Variable manufacturing overhead Variable selling and administrative 2 17 expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $108,180 $ 97,440 expense The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing. b. Prepare an income statement for the month using absorption costing. Complete this question by entering your answers in the tabs below. Required Required A B Prepare an income statement for the month using absorption costing. Absorption Costing Income Statement %24
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