GUCK HERE TO SAVE YOUR WE 852 A 1 2 XYZ Company manufactures and sells a single product. Cost data for the product is listed follow: Tort 3 Product Cost Data 4 s 6 Variable costs per unit Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 7 $10 18 8 6 S42 B . . Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $216,000 338,000 $554,000 The product sells for $98 per unit. The company started July with no finished goods inventory. Production and sales data for July and August are as follows: Beginning Units Ending Units Sold inventory Produced inventory July 0 54,000 46,000 8,000 August 8,000 48,000 52,000 4,000 Note: Some green and blue highlighted areas may not need to be used. Required: 2. Determine the unit product cost under absorption costing and variable costing for July and August. (4 marks) Variable Costine CERCKHOR TO SAVE YOUR WORK 152 11 A BOCKO August 48.000 52.000 19 4.000 20 Note: Some green and blue highlighted areas may not need to be used. 2 Required: 1. Determine the unit product cost under absorption costing and variable costing for July and August (4 marks) 1 Absorption Costing July August Variable Costing July August Unit product cost 2. Prepare, in good form, operating income statements for Linden Company for August only using a) Absorption Costing. (6 marks) Supporting calculations "1 P2 P3 P4 New A 12 41 40 50 51 b) Variable Costing (5 marks) Supporting calculations 12 1 3. Reconcile Linden Company's operating income reported under absorption and variable costing for August only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) Absorption costing operating income (loss) as s w n worg 3. Reconcile Linden Company's operating income reported under absorption and werble costing for my. Be specific about where the difference in operating income comes from marks) Sporting cake Variable casting operating incomo Absorption costing operating income (loss) 20 4. Compare the 2 costing methods and explain how each method is used by companies. (2 marks)