Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Game Depot manufactures video games that it sells for $42 each. The company uses a manufacturing overhead allocation rate of $4 per game. Assume all

"Game Depot manufactures video games that it sells for $42 each. The company uses a manufacturing overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as planned. The following data are from game depot's first two months in business during 2018:"
I've completed requirements 1-2a but im stuck on the variable costing income statement. Help with that along with requirements 3 & 4 would be very much appreciated
image text in transcribed
image text in transcribed
core: 7.54 of 20 pts 2P21-28A (similar to) Game Depot manufactures video games that it sells for $42 each. The company uses a fixed man are from Game Depot's first two months in business during 2018: (Click the icon to view the data.) Read the requirements 22,400 $ 50,000 72,400 Operating Income Requirement 2b. Prepare monthly income statements for October and November, including colun Game Depot Variable Costing Income Statement October 2018 November 2018 $ 54.600 $ 105,000 $ Total 159,600 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs 32,600 16,300 18.800 $ 16,300 51,200 $ 70,000 Operating Income Choose from any list or enter any number in the input fields and then click Check Answer parts remaining 7 (1 complete) HW Score: overhead allocation rate of $4 per game. Assume all costs and production levels are exactly as pla Data Table October 1.300 units 2.200 units November 2,500 units 2.200 units 12 ES 12 Sales Production Variable manufacturing cost per game Sales commission cost per game Total fixed manufacturing overhead Cotal fixed selling and administrative costs 8.800 7.500 8.800 7,500 Print Done Clear All Check Requirements er ar 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: a. absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the differences in inventory balances and the differences in operating income, Explain the differences in inventory balances based on absorption costing versus variable costing one

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

Auditing Text And Cases

Authors: W. Robert Knechel, Knechel

1st Edition

0538819340, 9780538819343

More Books

Students also viewed these Accounting questions

Question

=+what you can edit out yet still get the message across.

Answered: 1 week ago

Question

=+3. How could you extend the campaign creatively?

Answered: 1 week ago