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hi! this is all one question! thank you Denton Company manufactures and sells a single product. Cost data for the product are given: $6 Variable
hi! this is all one question! thank you
Denton Company manufactures and sells a single product. Cost data for the product are given: $6 Variable costs per unit: 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 fixed cost per month 11 3 2 $ 22 $ 120,000 172,000 $ 292,800 Book The product sells for $51 per unit. Production and sales data for July bnd August, the first two months of operations, follow: Units Produced Units Sold July 24,000 20,000 August 24,000 28,888 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 $ 1,020,000 $ 1,428,000 500,000 700, 800 520,000 728,000 212,000 228,000 $ 308,000 $ 500,000 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 absorption costing net operating incomes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit product cost under: (a) Absorption costing, (b) Variable costing, Unit Product Cost a. Absorption costing b. Variable costing 20 Required 1 Required 2 Required 3 Prepare variable costing income statements for July and August. Denton Company Variable Costing Income Statement July August 0 0 0 0 0 0 $ 0 $ 0 Not operating income (loss) Step by Step Solution
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