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Could you solve the required 1,2 and 3? Denton Company manufactures and sells a single product. Cost data for the product are given: $ 4
Could you solve the required 1,2 and 3?
Denton Company manufactures and sells a single product. Cost data for the product are given: $ 4 11 2 3 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 20 $ 135,000 175,000 $ 310,000 The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Sold July August Units Produced 27,000 27,000 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income July August $ 1,173,000 $ 1,581,000 506,000 682,000 667,000 899,000 244,000 268,000 $ 423,000 $ 631,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing. Unit Product Cost a. Absorption costing b. Variable costing Required 1 Required 2XStep by Step Solution
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