Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please help me solve this question with full working out In the coming year, Kalling Company expects to sell 28,700 units at $32
Can you please help me solve this question with full working out
In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year. Units production Direct materials (per unit) Direct labour (per unit) Variable overhead (per unit) Fixed overhead (per unit)* Selling expense (per unit) Selling expense (fixed) Administrative expense (fixed) 30,000 $9.95 $2.75 $1.65 $2.50 $2.00 $65,500 $231,000 *The fixed overhear per unit is based on 30,000 units produced Required: 1. Calculate the cost of one unit of product under absorption costing. [2 MARKS] 2. Calculate the cost of one unit of product under variable costing. [2 MARKS] 3. Calculate operating income under absorption costing for next year. [4 MARKS] 4. Calculate operating income under variable costing for next year. [4 MARKS] 5. Reconcile the net profits obtained under both the methods by using short-cut method [1 MARK] 6. The volume of manufacturing in a period has an effect on income calculated using absorption costing but has no effect on income calculated using variable costing. Explain. [2 MARKS]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started