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Any help is greatly appreciated! The EG Company produces and sells one product. The following data refer to the year just completed: Beginning inventory......... Units
Any help is greatly appreciated!
The EG Company produces and sells one product. The following data refer to the year just completed: Beginning inventory......... Units produced Units sold.... 25,000 20,000 $400 $15 $275,000 Sales price per unit... Selling and administrative expenses: Variable per unit Fixed (total). Manufacturing costs: Direct materials cost per unit.. Direct labor cost per unit... Variable manufacturing overhead cost per unit.... Fixed manufacturing overhead (total). $200 $50 $30 $300,000 Assume that direct labor is a variable cost. Required: a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. 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. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) aboveStep by Step Solution
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