Denton Company manufactures and sells a single product. Cost data for the product are given: 4 9 Variable costs per unit: Direct materials $ Direct labor Variable manufacturing overhead Variable selling and 1 administrative Total variable cost per $ 17 unit Pixed costs per month Fixed manufacturing overhead $ 105,000 Fixed selling and administrative 169,000 Total fixed cost per month $274,000 ces The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow Units Units Produced Sold July 21,000 17,000 August 21.000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August July August Sales $765,000 $1,125,000 Cost of goods sold 357,000 525.000 Gross margin 408,000 600,000 Selling and 186,000 administrative expenses 194,000 Net operating income $222.000 $ 406,000 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 Required Required 2. Determine the unit product cost under: (a) Absorption costing. (b) Variable costing Product Cost Absorption conting b Variable costing Required 2 > Denton Company manufactures and sells a single product Cost data for the product are given: Variable costs per unit: Direct materials $ Direct labor 9 Variable manufacturing overhead Variable selling and administrative Total variable cost per $ 17 unit Fixed costs per month Fixed manufacturing $105,000 overhead Fixed selling and administrative 169,000 Total fixed cost per month $274,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations, follow Units Units Produced Sold July 21,000 17.000 August 21,000 25,000 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 $765,000 $1,125,000 357,000 525,000 408,000 600,000 186,000 194,000 $222,000 $ 406,000 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 Required Required 1 2 Prepare variable costing income statements for July and August Denton Company Variable Costing Income Statement August Denton Company manufactures and sells a single product. Cost data for the product are given 9 1 Variable costs per unit: Direct materials $ Direct labor Variable manufacturing 3 overhead Variable selling and administrative Total variable cost per $ 17 unit Fixed costs per month: Fixed manufacturing overhead $105,000 Fixed selling and administrative 169,000 Total tixed cost per month $274,000 The product sells for $45 per unit. Production and sales data for July and August, the first two months of operations. follow Units Units Produced Sold July 21,000 17,000 August 21,000 25,000 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 Set operating income July August $765,000 $1,125,000 357.000 525,000 408,000 600,000 186,000 194,000 $222,000 $ 406,000 Required: 1. Determine the unit product cost under: 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 Required 1 2 Reconcile the variable costing and absorption costing net operating incomes. (Enter any losses or deductions as a negative value.) Reconciliation of Vale Casting and Asorption Costing Net Operating Income July August Variable conting net operating income foss Add(deduct) faced manufacturing overhead cost deferred in released from inventory under absorption costing Absorption cong net operating income Gloss)
