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. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing. 2.2 Calculate the unit product cost for the month under absorption costing 2.3 Prepare an income statement for the month using the absorption costing method. 2.4 Prepare an income statement for the month using the Marginal costing method.

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. (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing. 2.2 Calculate the unit product cost for the month under absorption costing 2.3 Prepare an income statement for the month using the absorption costing method. 2.4 Prepare an income statement for the month using the Marginal costing method.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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4)The Dorset Corporation produces and sells a single product. The following datarefer to the year just completed:Beginning inventory 0Units produced 32,200Units sold 26,600Selling price per unit $ 422Selling and administrative expenses:Variable per unit $ 19Fixed per year $ 452,200Manufacturing costs:Direct materials cost per unit $ 259Direct labor cost per unit $ 56Variable manufacturing overhead cost per unit $ 34Fixed manufacturing overhead per year $ 450,800Assume that direct labor is a variable cost.Required:a. Compute the unit product cost under both the absorption costing and variablecosting approaches.Cost per unitAbsorption costingVariable costingb. Prepare an income statement for the year using absorption costing.Absorption Costing Income Statement1,569,400$611,800c. Prepare an income statement for the year using variable costing.Variable Costing Income Statement4) 5Variable expenses:9,788,8001,436,400Fixed expenses:903,000$533,400d. Reconcile the absorption costing and…
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Problem: AAA Company produces and sells Product X: Annual Demand 24,000 units Annual cost to held one unit of inventory P11.52 Order Cost P38.40 Beg. Inventory P 0 a. What is the Economic Order Quantity? b. How much is the total Order Costs? c. How much is the total Carrying Costs?
Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost: Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit: Direct Materials Rs 30 Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0 Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
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NEED IT ASAP LO.3 (FIFO cost assignment) In October 2010, Tibbetts Company had the following production and cost data:Beginning inventory units (80% complete as to DM;45% complete as to DL; 30% complete as to OH)42,600October completed production 1,570,000Units in ending inventory (35% complete as to DM;15% complete as to DL; 5% complete as to OH) 28,400Beginning inventory cost $458,482October direct material cost per EUP $10.74October direct labor cost per EUP $13.88October overhead cost per EUP $24.80 a. What is the cost of the beginning inventory transferred out in October?b. What is the total cost transferred out in October?c. What is the cost of ending inventory at the end of October?d. What is the total cost to account for during October?
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