M08 worksheet 2 For each of the products on the following tabs, please complete the following Calculate product cost per unit under absorption and variable costing Prepare the Variable Income Statement Calculate ending inventory under Variable Costing Convert Variable Net Income to Absorption Net Income Prepare the Absorption Income Statement Calculate ending inventory under Absorption Costing Variable Cost per unit Absorption Cost per unit $250/unit MO8 worksheet 2 2 Type of account Price and costs Selling Price Manufacturing costs Direct materials $60/unit Direct labor $10/unit Variable Overhead $14/unit Fixed Overhead $600,000/year Selling and Adminstrative Expenses Variable $4/unit Fixed $150,000/year Product Units Produced Handbags 50,000 Handbags Variable Costing Units sold 44,000 Units In Ending Inventory 10,000 Convert Income Statement to Absorbtion Handbags Handbags Absorption Costing Income Statement Sales Variable Costing Net Income Sales Direct Materials Add Fixed OH in ending Inventory Direct Materials Direct Labor Less Fixed Oli in beginning Inventory Direct Labor Variable OH Absorption Net Income Variable OH Variable S&A Fixed OH Total Variable Costs COGS Contribution Margin Gross Margin Fixed OH S&A Variable Fixed S&A S&A Fixed Net income Net Income Balance Sheet - Ending Inventory Balance Sheet Ending Inventory MOS worksheet 2 Variable Cost per unit Absorption Cost per unit Type of account Price and costs Selling Price $1,000/unit Manufacturing costs Direct materials $100/unit Direct labor $10/unit Variable Overhead $50/unit Fixed Overhead $900,000/year Selling und Adminstrative Experises Variable $1/unit Fixed $300,000/year Year Units Produced Smartphones 20,000 Smartphones Variable Costing Units sold 33,000 Smartphones Units in Ending Inventory 7,000 Convert Income Statement to Absorbtion Smartphones Absorption Costing Income Statement Sales Variable Costing Net Incorre Sales Direct Materials Add Fixed OH in ending Inventory Direct Materials Direct Labor Less Fixed OH in beginning Inventory Direct Labo Variable 011 Absorption Net Income Variable OH Variable S&A Fixed OH Total Variable Costs COGS Contribution Marzin Gross Marpin Fixed OH 58. Variable Fixed S&A 5&A Fixed Nct Income Net Income Balance Sheet Ending Inventory Dalance Sheet - Ending Inventory Variable Cost per unit Absorption Cost per unit M08 worksheet 2 Type of account Price and costs Selling Price $15/unit Manufacturing costs Direct materials S4/unit Direct labor $2/unit Variable Overhead $1/unit Fixed Overhead $480,000/year Selling and Adminstrotive Expenses Variable $0.25/unit Fixed $80,000/year Year Units Produced Footballs 120,000 Footballs Variable Costing Units sold 100,000 Units in Ending Inventory 20,000 Convert Income Statement to Absorbtion Footballs Footballs Absorption Costing Income Statement Sales Variable Costing Net Income Sales Direct Materials Add Fixed OH in ending Inventory Direct Materials Direct Labor Less Fixed OH in beginning Inventory Direct Labor Variable OH Absorption Net Income Variable OH Variable SRA Fixed OH Total Variable Costs COGS Contribution Margin Gross Margin Fixed OM SKA Variable Fixed & S&A Fixed Net Income Net Income Balance Sheet - Ending Inventory Balance Sheet - Ending Inventory