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Managerial accounting please do all requirements VitaSport produced 11,000 cases of powdered drink mix and sold 10,000 cases in April 2018. The sales price was
Managerial accounting please do all requirements
VitaSport produced 11,000 cases of powdered drink mix and sold 10,000 cases in April 2018. The sales price was $27. variable costs were $11 per case ($8 manufacturing and $3 selling and administrative), and total fixed costs were $75,000 ($55,000 manufacturing overhead and $20,000 selling and administrative). The company had no beginning Finished Goods Inventory. VitaSport calculated the cost per unit and the total cost of the 1.000 cases in Finished Goods Inventory as of April 30 using both the absorption and variable costing methods. The calculations are presented below. Click the icon to view the calculations using the absortion und variable costing methods.) Read the requirements. i Requirements Requirement 1. Which costing method produces the highest operating income? Explain why The cost method produces the highest operating income. The primary reason for this is that are distributed across the entire production run as part of the unit cost. Under the absorption costing method, S of fixed manufacturing costs are Under the Under the variable costing method, this amount is 1. Which costing method produces the highest operating income? Explain why. 2. Which costing method produces the highest April 30 balance in Finished Goods Inventory? Explain why. i Reference April 30, 2018 Absorption Variable costing costing S8 S8 Variable manufacturing cost per case Fixed manufacturing overhead per case = Total product cost per case x Number of cases in Finished Goods Inventory S 13 S 1,000 13,000 S & 1,000 8,000 = Total cost of Finished Goods Inventory S Choose from any list or enter any number in the input fields and then click Check Answer part remaining Print | Done ckStep by Step Solution
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