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3. Scott Espresso Machina Inc. produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory 0 Units produced
3. Scott Espresso Machina Inc. produces a single product. Data concerning the company's operations last year appear below: Units in beginning inventory 0 Units produced 2,000 Units sold 1,900 Selling price per unit $100 Variable costs per unit: Direct materials $30 Direct labor $10 Variable manufacturing overhead $5 Variable selling and administrative $2 Fixed costs in total: Fixed manufacturing overhead $40,000 Fixed selling and administrative $60,000 og det 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. come Crystal Corporation produces a single product. The company's variable costing statement for the month of May appears below: Crystal Corporation Income Statement For the month ended May 31 Sales ($10 per unit) $900.000 Variable expenses: Variable cost of goods sold 450,000 Variable selling expense 90.000 Total variable expenses 540.000 Contribution margin 360.000 Fixed expenses: Fixed manufacturing overhead 240.000 Fixed selling and administrative 90.000 Total fixed expenses 330.000 Net operating income $30.000 The company produced 80,000 units in May and the beginning inventory consisted of 25.000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months Under absorption costing, for May the company would report A. $30,000 loss C. $30,000 profit B. SO profit D. $60,000 profit Meyer Corporation has two sales areas: North and South. During April, the contribution margin in the North was $90,000, or 30% of sales. The segment margin in the South was $25.000, or 10% of sales. Traceable fixed expenses were $30,000 in the North and S15,000 in the South Meyer Corporation reported a total net operating income of $52,000. The total sales for Meyer Corporation were: B. C. D. $983,333 $430,000 $550.000 $480.000
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