Question
Maga Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 198 Units in
Maga Company, which has only one product, has provided the following data concerning its most recent month of operations: |
Selling price | $ | 198 |
Units in beginning inventory | 0 | |
Units produced | 3,230 | |
Units sold | 3,060 | |
Units in ending inventory | 170 | |
Variable costs per unit: | ||
Direct materials | $ | 55 |
Direct labor | $ | 55 |
Variable manufacturing overhead | $ | 14 |
Variable selling and administrative | $ | 13 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 109,820 |
Fixed selling and administrative | $ | 12,240 |
Required: |
a. | What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the "$" sign in your response.) |
Cost per unit | |
Variable costing | $ |
b. | What is the unit product cost for the month under absorption costing? (Omit the "$" sign in your response.) |
Cost per unit | |
Absorption costing | $ |
c. | Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) |
Variable Costing Income Statement | ||
(Click to select)Variable cost of goods soldSalesNet operating income (loss)Selling and administrative expensesVariable selling and administrative expensesManufacturing overheadContribution margin | $ | |
Variable expenses: | ||
(Click to select)Variable cost of goods soldDirect laborSalesDirect materialsVariable selling and administrative expensesNet operating incomeContribution margin | $ | |
(Click to select)Variable cost of goods soldDirect materialsSalesContribution marginDirect laborVariable selling and administrative expensesNet operating income | ||
(Click to select)Variable cost of goods soldSelling and administrative expensesNet operating income (loss)Contribution marginVariable selling and administrative expensesManufacturing overheadSales | ||
Fixed expenses: | ||
(Click to select)SalesFixed manufacturing overheadContribution marginVariable cost of goods soldFixed selling and administrative expensesNet operating incomeVariable selling and administrative expenses | ||
(Click to select)Fixed manufacturing overheadSalesFixed selling and administrative expensesVariable cost of goods soldVariable selling and administrative expensesNet operating incomeContribution margin | ||
(Click to select)Selling and administrative expensesContribution marginVariable cost of goods soldSalesNet operating income (loss)Manufacturing overheadVariable selling and administrative expenses | $ | |
d. | Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) |
Absorption Costing Income Statement | |||
(Click to select)Net operating income (loss)Gross marginSalesCost of goods soldFixed selling and administrative expensesVariable selling and administrative expenses | $ | ||
(Click to select)Cost of goods soldNet operating income (loss)SalesVariable selling and administrative expensesFixed selling and administrative expensesGross margin | |||
(Click to select)Variable selling and administrative expensesSalesNet operating income (loss)Gross marginCost of goods soldFixed selling and administrative expenses | |||
Selling and administrative expenses: | |||
(Click to select)Fixed selling and administrative expensesNet operating income (loss)Cost of goods soldGross marginVariable selling and administrative expensesSales | $ | ||
(Click to select)SalesNet operating income (loss)Fixed selling and administrative expensesCost of goods soldVariable selling and administrative expensesGross margin | |||
(Click to select)Gross marginSalesCost of goods soldFixed selling and administrative expensesNet operating income (loss)Variable selling and administrative expenses | $ | ||
e. | Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the "$" sign in your response.) |
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes | |
Variable costing net operating income | $ |
(Click to select)AddDeduct: (Click to select)Fixed manufacturing overhead costs released from inventory under absorption costingFixed manufacturing overhead costs deferred in inventory under absorption costing | |
Absorption costing net operating income | $ |
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