Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs pon units Direct materials Direct labor Variable manufacturing
Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs pon units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month Facturing werhead Fixed selling and administrative Total cost perth $ 23 $ 120,000 1/2,000 The product sells for $17 per unit. Production and sales data for July and August, the first two months of operations, follow 10,000 26.000 34.000 The company's Accounting Department has prepared the following absorption costing income statements for July and August Costed sold 1. 0.00 2, 5 $ 348,000 503,000 Het operating income 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: Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing Unit Product Cost Absorption costing Variable conting Required 2 > Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August Denton Company Variable Costing Income Statement July August Netplatnicome Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing niet operating incomes. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July August Variable costing net operating income doss) Add ideduct fixed manufacturing overhead cost dofetred in released from) inventory under stisorption costing Absorphon costing net operating income foss)
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