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denton company manufactures and sells a single product cost data for the product are given direct materials three direct labor 11 variable manufacturing overhead three
denton company manufactures and sells a single product cost data for the product are given direct materials three direct labor 11 variable manufacturing overhead three variable selling administrative to total variable cost per unit 19 fix cost per month fixed manufacturing overhead 63,000
Problem 7-22 Variable Costing Income Statements; Income Reconciliation (LO7-1, LO7-2, L07-3] Denton Company manufactures and sells a single product. Cost data for the product are given: $ 3 11 2 Variable costs per unit: Direct material: 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 Totalfixed cost per month $ 19 $ 63,000 172.000 $ 235,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow Broduced 21000 Unato Bold 12,099 kugust The company's Accounting Department has prepared the following absorption costing Income statements for Juty and August Bles Sot goods 814 dogan Belling and make expenses Nicing income July $ 125.000 340,000 425.000 200.000 2:9,000 Augus $1. 125.000 500,000 22 aaa..000 42.00 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 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Netoperating income less 3 Required 1 Required 33 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as negative value.) August Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (loss) Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing Absorption costing net operating income (loss) Step by Step Solution
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