Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating

Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below:

Selling price per unit P500
Direct materials P110
Direct labor P60
Variable manufacturing overheads P30
Fixed manufacturing overheads per year P1 200 000
Variable selling and administrative costs P40
Fixed selling and administrative costs P700 000

Units in beginning inventory 2 000
Units produced during the year 6 000
Units sold during the year 8 000
Units in ending inventory 0

Required:

a. Prepare an income statement under absorption costing. (8 marks)

b. Prepare an income statement under marginal costing. (8 marks)

c. Reconcile the marginal costing and absorption costing net operating incomes. (4 marks)

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_2

Step: 3

blur-text-image_3

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

College Accounting Chapters 1 24

Authors: Douglas J. Mcquaig, Patricia Bille, Tracie L. Nobles

10th Edition

1439037752, 9781439037751

More Books

Students also viewed these Accounting questions

Question

What is carpal tunnel syndrome?

Answered: 1 week ago