Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Question

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Answer 1

Question

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

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Answer 2

Question

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

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Answer 3

Question

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

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Answer 4

Question

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

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Answer 5

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

Answer 6

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Answer 7

Chapter 19, Problem 8AP

(a)

To determine

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Answer 8

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Answer 9

(b)

To determine

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Answer 10

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

Answer 11

(c)

To determine

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

Answer 12

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

Answer 13

(d)

To determine

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 5Q Ch. 19 - Prob. 6Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 8Q Ch. 19 - Prob. 9Q Ch. 19 - Prob. 10Q

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are produced.

Reconcile the differences in net incomes under the two approach, and explain what accounts for this difference.

Discuss the relative usefulness of the variable costing income statements versus the absorption costing income statements for decision making and for evaluating the manager’s performance.

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Chapter 19 Solutions