b. Prepare a contribution format income statement for the month. (Do not leave any empty spaces; input a 0 wherever it is required.) b. Prepare an income statement for the month. (Do not leave any empty spaces; input a 0 wherever it is required.) 2. Assume that the company uses variable costing. a. Determine the unit product cost. 2-a. In year 4 , the company's variable costing operating income was $242,200 and its absorption costing operating income was $208,200. Did inventories increase or decrease during year 4 ? Increase Decrease 2-b. How much fixed manufacturing overhead cost was deferred or released from inventory during year 4 ? Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in indonesla. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $500. Selected data for the company's operations last year follow: Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. Coverall inc, produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet: Since the new case is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) c. Reconcile the variable costing and absorption costing operating income figures. Leander Office Products Inc. produces and selis small storage and organizational products for office use. During the first month of operations, the products sold well. Andrea Leander, the owner of the company, was surprised to see a loss for the month on her income statement. This statement was prepared by a local bookkeeping service recommended to her by her bank manager. The statement follows: - Consists of direct materials, direct labour, and variable manufacturing overhead. Leander is discouraged over the loss shown for the month, particularly since she had planned to use the statement to encourage investors to purchase shares in the new company. A friend who is an accountant insists that the company should be using absorption costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have reported a profit for the month. Selected cost data relating to the product and to the first month of operations follow: 2. Prepare an income statement for the year using the variable costing method. Sunrise Pools and Spas manufactures fibreglass forms for in-ground pools and swim spas for all-season use. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the data for their swim spa business in years 1,2, and 3 shown below. The company's fixed manufacturing overhead per unit was constant at $2,700 for all three years: Required: 1. Determine each year's absorption costing operating income. Present your answer in the form of a reconciliation report. 2-a. In year 4, the company's variable costing operating income was $242,200 and its absorption costing operating income was $208,200. Did inventories increase or decrease during year 4 ? 1. Complete the following: a. Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) b. Redo the company's income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.) c. Reconcile the variable and absorption costing operating income (loss) figures. (Loss amounts should be entered with a minus sign.) 2. This part of the question is not part of your Connect assignment. 3. During the second month of operations, the company again produced 57,600 units but sold 69,600 units. (Assume no change in total fixed costs.) a. Prepare a contribution format income statement for the month using variable costing. Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Ball in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $920. Selected data for the company's operations last year follow: An absorption costing income statement prepared by the company's accountant appears below: Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period