Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 83 525 2,220 2,370 375 Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 21 $ 18 $ 1 $ 12 $51,060 $ 7,110 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. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Sales $ 196,710 Variable expenses: $ Variable cost of goods sold Variable selling and administrative expenses 94,800 28,440 $ 123,240 73,470 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 51,060 7,110 58,170 15,300 Net operating income $ Complete this question by entering your answers in the tabs below. Required A Required B Required C Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) $ 15,300 Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing Absorption costing net operating income (loss) Required A Required B Required C Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing $ 15,300 AL 1. -1!. .................. ... Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing Add: Fixed manufacturing overhead costs released from inventory under absorption costing Less: Fixed manufacturing overhead costs deferred in inventory under absorption costing Less: Fixed manufacturing overhead costs released from inventory under absorption costing
