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Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
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 $
The company produces the same number of units every month, although the sales in units vary from month to month. The company's
varlable costs per unit and total fixed costs have been constant from month to month.
Requlred:
a What is the unlt product cost for the month under varlable costing?
b Prepare a contribution format Income statement for the month using varlable costing.
c Without preparing an Income statement, determine the absorption costing net operating Income for the month. Hint: Use the
reconcillation method.
Complete this question by entering your answers in the tabs below.
What is the unit product cost for the month under variable costing?
Prepare a contribution format income statement for the month using variable costing.
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