Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6 Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable
6 Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 4 $ 21 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 135,000 166,000 $ 301,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 27,000 27,000 Units Sold 23,000 31,000 uly August The company's Accounting Department has prepared the following absorption costing income statements for July and August July Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $1,196,000 1,612,000 529,000 713,000 667,000 235,000 259,9e 432,000 640,000 899,000 Required 1. Determine the unit product cost under: a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started