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apter 6 - Homework Swed 3 Denton Company manufactures and sells a single product. Cost date for the product are given Variable costs per unit:
apter 6 - Homework Swed 3 Denton Company manufactures and sells a single product. Cost date 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 Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 3 $ 19 Book $100,000 169.000 $ 277,000 Print The product sells for $55 per unit. Production and sales data for July and August, the first two months of operations, follow rences July August Units Produced 18,000 18,000 Units Sold 14,000 22,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August Duly August Sales $ 270,000 $ 1,210,000 Cost of goods sold 300,00 484.000 Gross margin 462,000 726,00 Selling and ministrative expenses 211,000 235,00 Net operating income $ 251,080 $ 491,000 Required: 1. Determine the unit product cost under a. Absorption costing b. Variable costing 2. Prepare variable costing income statements for July and August. ative expenses Net operating income 211,000 $ 251,800 235,000 491,000 $ Required: 1. Determine the unit product cost under a. Absorption costing. b. Variable costing 2. Prepare variable costing income statements for July and August 3. Reconcile the variable costing and absorption costing net operating incomes. es 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 Regled Required 2 > answers in the tabs below. Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. ok Denton Company Variable Costing Income Statement July August t Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses ices 0 0 0 0 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expenses 0 ol Total fixed expenses Net operating income (loss) $ 0 $ 0 1. Determine the unit product cost under a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes ts Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Required 3 Print Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) erences August Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income foss)
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