Question
Compute the product cost per game produced under absorption costing and under variable costing. October Absorption Variable costing costing Total product cost per game November
Compute the product cost per game produced under absorption costing and under variable costing.
October | |||||
Absorption | Variable | ||||
costing | costing | ||||
Total product cost per game | |||||
November | |||||
Absorption | Variable | ||||
costing | costing | ||||
Requirement 2a. Prepare monthly income statements for
October
and
November,
including columns for each month and a total column, using absorption costing.
Game Source | |||
Absorption Costing Income Statement | |||
October | November | Total | |
Operating Income |
Requirement 2b. Prepare monthly income statements for
October
and
November,
including columns for each month and a total column, using variable costing.
Game Source | |||
Variable Costing Income Statement | |||
October | November | Total | |
Operating Income |
This is the data table for the question
Data Table
| October | November |
---|---|---|
Sales | 2,000 units | 3,000 units |
Production | 2,900 units | 2,900 units |
Variable manufacturing cost per game | $12 | $12 |
Sales commission cost per game | 3 | 3 |
Total fixed manufacturing overhead | 14,500 | 14,500 |
Total fixed selling and administrative costs | 8,500 | 8,500 |
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