Chapter M:6 Homework

1.

Winters, Inc. is preparing nancial statements to be distributed to investors and creditors. The company should prepare the income statement using O A. absorption costing because it follows GAAP. O B. variable costing because it follows GAAP. O C. variable costing because it is better for planning purposes. 0 D. absorption costing because it is better for controlling purposes. Data Table Units produced 380 units Direct materials $72 per unit Direct labor 30 per unit Variable manufacturing overhead 15 per unit Fixed manufacturing overhead 10,640 per year Variable selling and administrative costs 23 per unit Fixed selling and administrative costs 4,560 per year Matt Company had the following costs: .Click on the icon to view the dam.) Calculate the unit product cost using variable costing. Round your answer to the nearest cent. Select the labels and enter the amounts to compute the unit product post using variable costing. (If an input eld is not used in the table leave the input eld empty; do not select a label or enter a zero.) [ Total unit product cost Net Sales Revenue Variable Cost of Goods Sold Fixed Cost of Goods Sold Variable Selling and Administrative Costs Fixed Selling and Administrative Costs Requirements Calculate the gross prot and operating income for March using absorption costing. Calculate the contribution margin and operating income for March using variable costing. Metro Company reports the following information for March: a (Click the icon to view the data.) Requirement 1. Calculate the gross prot and operating income for March using absorption costing. Operating Income