Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Denton Company manufactures and sells a single product Cost data for the product are given. Variable costs per unit: Direct materials Direct labor Variable manufacturing

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Denton Company manufactures and sells a single product Cost data for the product are given. Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: $ 60,000 169,000 Fixed selling and administrative Total fixed cost per month $ 229,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow. Units Produced 15,000 15.000 Units Sold 11,000 19,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August July $ 550,000 $ August 950,000 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 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 Prepare variable costing income statements for July and August Denton Company Variable Costing Income Statement July 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 Prepare variable costing income statements for July and August Denton Company Variable Costing Income Statement July August Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August Net operating income (loss)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Diversity In Library Collections

Authors: Rosalind Washington, Sarah Voels

1st Edition

1440878749, 978-1440878749

More Books

Students also viewed these Accounting questions

Question

What is the meaning of margin of safety?

Answered: 1 week ago