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help me and solve asap ILO6-1, LO6-2, LO6-3) Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs
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ILO6-1, LO6-2, LO6-3) Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month Fixed manufacturing overhead Fixed selling and administrative Total tixed cost per month $ 6 10 3 3 $ 22 $ 108,000 166,000 $ 274,000 The product sells for $48 per unit. Production and sales data for July and August, the first two months of operations, follow July August Unita Produced 27,000 27.000 Units sold 23,000 31,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August salon Cost of goods sold Groan margin Selling and administrative expenses Not operating income July August $ 1,100,000 $1,400,000 529.000 713,000 $75,000 775,000 235.000 259.000 340.000 $ 516,000 Required: 1. Determine the unit product cost under: a. Absorption costing b. Variable costing Prepare variable costinn inname Required 1 Required 2 Required 3 Prepare variable costing Income statements for July and August. Denton Company Variable Costing Income Statement July Sales $ 1,104,000 Variable expenses: Variable cost of goods sold 266,000 Variable selling and administrative expenses 42,000 August $ 1,488,000 418,000 66,000 308,000 796,000 484,000 1,004,000 Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 72,000 169,000 72,000 169,000 Total fixed expenses Net operating income (loss) 241,000 $ 555,000 241,000 $763,000 Required 1 Required 2 Required 3 Reconcile the variable costing and absorption costing net operating Incomes. (Enter any losses or deduction value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes July Variable costing net operating income (loss) 137,000 Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing 16,000 Absorption costing net operating income (loss) $ 153,000 August 353,000 IS (16,000) IS 337,000 Step by Step Solution
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