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Can you please help me with these question? Thank you so much. Question 1: Stark and Company would like to evaluate one of the product

Can you please help me with these question? Thank you so much.

Question 1:

Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.

Selling price

$100

Units in beginning inventory

105

Units produced

6,300

Units sold

6,050

Units in ending inventory

610

Variable costs per unit:

Direct materials

$60

Direct labour

$47

Variable manufacturing overhead

$3

Variable selling and administrative

$6

Fixed costs:

Fixed manufacturing overhead

$64,100

Fixed selling and administrative

$35,500

Required:

1)Under variable costing, identify the unit product cost for the month.

2)What is the unit product cost for the month under absorption costing?

3) develop an income statement for the month using the contribution format and the variable costing method.

4) arrange an income statement for the month using the absorption costing method.

Question 2:

The following information pertains to Death Star Corporation for a period:

Selling price per unit

48

Standard fixed manufacturing costs per unit

25

Variable selling and administrative costs per unit

2

Fixed selling and administrative cost per unit

14800

Beginning inventories:

Units

?

Standard fixed manufacturing cost

35,900

Standard variable manufacturing cost

18,750

Units produced

8,950

Units sold

8,600

Required:

1)Assume the unit standard costs data for the beginning and ending inventories remained constant during the period. What was the total standard cost of the ending inventory under absorption costing?

Question 3:

DC and Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.

Selling price

$111

100

Units in beginning inventory

400

350

Units produced

8,700

6800

Units sold

8,800

7100

Variable costs per unit:

Direct materials

$33

28

Direct labour

$36

30

Variable manufacturing overhead

$3

2

Variable selling and administrative

$8

6

Fixed costs:

Fixed manufacturing overhead

$61,500

53,400

Fixed selling and administrative

$169,000

144500

Required:

1)Compute the total Contribution Margin.

2)Compute the Operating Income under Variable Costing.

3) make a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

Question 4:

Stark and Company's has following cost data:

Systems development

$28,000

Final product testing and inspection

$1 1,000

Quality data gathering, analysis, and reporting

$ 8000

Net cost of scrap

$57,000

Returns arising from quality problems

$55,000

Amortization of test equipment

$52,000

Rework labour and overhead

$15,000

Test and inspection of incoming materials

$38,000

Product recalls

$32,000

Required:

1)Determine the prevention cost?

2)Determine Total appraisal cost?

3)Determine the total internal failure?

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