Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oates Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price.............................................. $120 Units in beginning

Oates Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price..............................................

$120

Units in beginning inventory.....................

0

Units produced..........................................

7,600

Units sold...................................................

7,400

Units in ending inventory..........................

200

Variable costs per unit:

Direct materials......................................

$15

Direct labor.............................................

$48

Variable manufacturing overhead..........

$7

Variable selling and administrative........

$10

Fixed costs:

Fixed manufacturing overhead...............

$228,000

Fixed selling and administrative............

$66,600

Required:

  1. Prepare an income statement for the month using the contribution format and the variable costing method.
  2. Prepare an income statement for the month using the absorption costing method.
  3. Prepare a reconciliation showing the change between the variable costing net income and the absorption net income.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Surviving An IRS Tax Audit

Authors: Frederick W. Daily

3rd Edition

1413318649, 978-1413318647

More Books

Students also viewed these Accounting questions