7q-19

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed e 34,100 28,100 452 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expensest Variable per unit Fixed per year Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year 5 23 $393,400 5 208 $ SB $ 38 $716,100 Assume that direct labor is a variable cost Required: a Compute the unit product cost under both the absorption costing and variable costing approaches b Prepare an income statement for the year using absorption costing Prepare an income statement for the year using variable costing d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Compute the unit product cost under both the absorption costing and variable costing approaches, Cost Per Unit Absorption costing Variable costing Required) 0. Prepare ncome statement for the year using absorption costing c. Prepare an income statement for the year using variable costing d Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prepare an income statement for the year using absorption costing. Absorption Costing Income Statement 0 Required: a Compute the unit product cost under both the absorption costing and variable costing approaches b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prepare an income statement for the year using variable costing. Variable Costing Income Statement Vanable expenses 0 0 Fixed expenses 0 0 Reould B Reavired Fixed manufacturing overhead per year $716,100 Assume that direct labor is a variable cost Required: a Compute the unit product cost under both the absorption costing and variable costing approaches. b Prepare an income statement for the year using absorption costing c. Prepare an income statement for the year using variable costing d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Net operating income (loss) under variable costing Net operating income (loss) under absorption costing