Question
Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 122 Units in
Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations: |
Selling price | $ | 122 |
Units in beginning inventory | 290 | |
Units produced | 6,600 | |
Units sold | 6,590 | |
Units in ending inventory | 300 | |
Variable costs per unit: | ||
Direct materials | $ | 42 |
Direct labor | $ | 26 |
Variable manufacturing overhead | $ | 2 |
Variable selling and administrative | $ | 21 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 151,800 |
Fixed selling and administrative | $ | 46,130 |
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The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. |
Required: |
a. | 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.) |
Unit product cost under variable costing: | |
Direct materials | $ |
Direct labor | |
Variable manufacturing overhead | |
| |
Variable costing unit product cost | $ |
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|
Variable Costing Income Statement | ||
(Click to select)Net operating income (loss)SalesVariable cost of goods soldVariable selling and administrative expensesContribution marginManufacturing overheadSelling and administrative expenses | $ | |
Variable expenses: | ||
(Click to select)Net operating incomeSalesDirect laborManufacturing overheadContribution marginVariable cost of goods soldVariable selling and administrative expenses | $ | |
(Click to select)SalesManufacturing overheadVariable cost of goods soldDirect laborVariable selling and administrative expensesNet operating incomeContribution margin | ||
|
| |
(Click to select)Selling and administrative expensesContribution marginSalesVariable selling and administrative expensesNet operating income (loss)Variable cost of goods soldManufacturing overhead | ||
Fixed expenses: | ||
(Click to select)Fixed manufacturing overheadContribution marginSalesFixed selling and administrative expensesVariable selling and administrative expensesVariable cost of goods soldNet operating income | ||
(Click to select)Fixed selling and administrative expensesVariable cost of goods soldFixed manufacturing overheadContribution marginVariable selling and administrative expensesSalesNet operating income | ||
|
| |
(Click to select)Manufacturing overheadVariable cost of goods soldVariable selling and administrative expensesContribution marginSalesNet operating income (loss)Selling and administrative expenses | $ | |
| ||
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b. | 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. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Unit product cost under absorption costing: | |
Direct materials | $ |
Direct labor | |
Variable manufacturing overhead | |
Fixed manufacturing overhead cost | |
| |
Absorption costing unit product cost | $ |
| |
|
Absorption Costing Income Statement | ||
(Click to select)SalesSelling and administrative expensesNet operating income (loss)Cost of goods soldGross margin | $ | |
(Click to select)Selling and administrative expensesGross marginNet operating income (loss)Cost of goods soldSales | ||
| ||
(Click to select)Net operating income (loss)Cost of goods soldGross marginSelling and administrative expensesSales | ||
(Click to select)SalesNet operating income (loss)Gross marginSelling and administrative expensesCost of goods sold | ||
| ||
(Click to select)SalesGross marginNet operating income (loss)Selling and administrative expensesCost of goods sold | $ | |
| ||
***PLEASE LIST EVERYTHING IN EXACT ORDER |
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