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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 Units in beginning inventory Units produced Units sold $ 125 395 6,210 6,420 Units in ending inventory Variable costs per unit: Direct materials 185 %24 47 Direct labor 2$ 24 Variable manufacturing overhead Variable selling and administrative expense 2$ $ 18 Fixed costs: $105,570 Fixed manufacturing overhead Fixed selling and administrative expense $ 89,880 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.

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 $ 125 395 6,210 6,420 Units in ending inventory Variable costs per unit: Direct materials 185 %24 47 Direct labor 2$ 24 Variable manufacturing overhead Variable selling and administrative expense 2$ $ 18 Fixed costs: $105,570 Fixed manufacturing overhead Fixed selling and administrative expense $ 89,880 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.

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 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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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 Units in beginning inventory Units produced 2$ 125 395 6,210 6,420 Units sold Units in ending inventory Variable costs per unit: 185 Direct materials $ $ $ $ 47 Direct labor 24 Variable manufacturing overhead Variable selling and administrative expense 3 18 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $105,570 $ 89,880 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 A Required B
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 2$ 125 395 6,210 6,420 Units sold Units in ending inventory Variable costs per unit: 185 Direct materials $ $ $ $ 47 Direct labor 24 Variable manufacturing overhead Variable selling and administrative expense 3 18 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $105,570 $ 89,880 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 A Required B
the same humber 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 A Required B Prepare an income statement for the month using absorption costing. ...... Absorption Costing Income Statement < Required A Required B
Transcribed Image Text:the same humber 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 A Required B Prepare an income statement for the month using absorption costing. ...... Absorption Costing Income Statement < Required A Required B
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