Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first month of operations (June 2020) are as follows: Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Beginning inventory Tents produced Tents sold Selling and administrative costs Fixed Variable $215,130 $3.20 per tent $16.00 per tent $41.10 per tent O tents 10,100 9,200 $383,400 $5.00 per tent sold The tent sells for $150. Management is interested in the opening month's results and has asked for an income statement (a) Your answer is correct. Assuming the company uses absorption costing: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 25.75.) Manufacturing cost 81.6 per unit 2. Prepare an absorption-costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 125.) 2. Prepare an absorption-costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Absorption Costing For the Month Ended June 30, 2020 Sales 1380000 Less Cost of goods sold 750720 Gross profit 629280 Less Selling and administrative expenses Variable 46000 Fixed 383400 429400 199880 Net income before tax SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is correct. Assuming the company uses variable costing: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 25.75.) Manufacturing cost 60.3 per unit 2. Prepare a variable-costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Variable Costing For the Month Ended June 30, 2020 Sales 1380000 Less Variable costs Variable cost of goods sold 554760 Variable selling and administrative expenses 46000 Total variable costs 600760 Contribution margin 779240 Less Fixed costs 598530 180710 Net Income before tax Your answer is correct. Reconcile the difference in net income between the absorption-costing and variable-costing methods. Reconciliation Statement Net income as per absorption costing 199880 Fixed overhead cost of ending inventory of tents 19170 Net income as per variable costing 4K 180710 2. Prepare a throughput-costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) Income Statement-Throughput Costing Reconcile the difference in net income between the variable-costing and throughput-costing methods. Reconciliation Statement Net income as per throughput-costing methods Deferred variable conversion cost of ending inventory of tents Net income as per variable costing
