Question
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Note: Options for empty boxes after
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Note:
Options for empty boxes after "Variable Expenses:" and "Fixed Expenses:" in Required B:
Accounts Receivable, Accounts Payable, Cash, Fixed Manufacturing Overhead, Fixed Selling & Administrative Expenses, Sales, Variable Cost of Goods Sold, Variable Selling & Administrative Expenses.
Options for empty boxes in Required C:
Add: Fixed Maufacturing Overhead costs deferred in inventory under absorption costing
Add: Fixed Maufacturing overhead costs released from inventory under absorption cost
Less: Fixed Maufacturing Overhead costs deferred in inventory under absorption costing
Less: Fixed Maufacturing overhead costs released from inventory under absorption cost
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: $ 96 600 1,990 2,140 450 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 $ $ $ $ 26 20 2 17 $43,780 $ 6,420 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.) Required A Required B Required C What is the unit product cost for the month under variable costing? Cost per Unit Variable costing Required A Required B > Required A Required B Required C Prepare a contribution format income statement for the month using variable costing. Variable Costing Income Statement Variable expenses: $ 0 0 Fixed expenses: 0 $ 0 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) Absorption costing net operating income (loss)Step by Step Solution
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