please answer a and b part . b part answer given is not write . domt add comments only answer if you really can
The Daniels Tool & Die Corporation has been in existence for a little over three years. The company's sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers' specifications and therefore uses a job-order cost system. Factory Overhead is applied to the jobs based on direct labour hours-the absorption costing (full) method. Overapplied or under oplied overhead is treated as an adjustment to cost of Goods Sold. The company's income statements and other data for the last two years are as follows: DANIELS TOOL & DIE CORPORATION 2015-2016 Comparative Income Statements 2015 2016 Sales $833,200 $1,015,800 Cost of goods sold Finished goods, January 1 24,900 17,800 Cost of goods manufactured 541,000 652.600 Total available 565,900 670,400 Finished goods, December 31 17,800 14,000 Cost of goods sold before overhead adjustment 548,100 656,400 Underapplied factory overhead 35,100 14,000 Cost of goods sold 583,200 670,400 Gross profit 250,000 345,400 Selling expenses 81,600 94,300 Administrative expenses 69,000 74,000 Total operating expenses 151.400 168,300 Operating income $98,600 $177,100 Daniels Tool & Die Corporation Inventory Balances January 1, 2015 Decembe 1, 2015 December 31, 2016 Raw material $22,000 $29.400 $10,200 Work in process $40,600 $48,000 $63,700 Direct labour hours (used in WIP) 1,660 Finished goods $24.900 $17,600 $14,000 Direct labour hours (used in FG) 1.420 1,010 830 Daniels used the same predetermined overhead rate in applying overhead to its production orders in both 2015 and 2016. The rate was based on the following estimates Faced factory overhead 124,880 Variable factory overhead $154,256 Direct labour hours (used in WIP) 24,800 Direct labour cos (used info) $149,280 2.310 In 2015 and 2016, the actual direct labour hours used were 20,300 and 23,300, respectively, Raw materials put into production were $291,700 in 2015 and $370,200 in 2016. The actual feed overhead was 542,700 for 2015 and 327,840 for 2016, and the planned direct labour rate was the direct labour achieved For both years, all of the administrative couts were fixed. The variable portion of the weling expenses results from a commission et pots a percentage of the les revenue "a) For the year ended December 31, 2016, prepare a revised income statement for Daniel Tool Die Corporation using the variable costing method (Round answers to decimal places. 5.273) Daniels Tools & Die Corporation Variable Costing Income statement For the year anded December 31, 2016 2) Reconcile the difference in operating income between Daniels Tool & Die Corporation's 2016 absorpt costing. (Round answers to 0 decimal places, e.g. 5,275.) Variable costing operating income FMOH deferred in work in process Inventory 173,860 $ 640 174,500 200 FMOH released from finished goods inventory Absorption costing operating income 174,300 The difference in the operating income of $440 is caused by the different treatment of fixed manufacturing overhe the goods are sold. Under variable costing, these costs are treated as expenses in the period incurred. Since the di absorption costing operating profit is higher because the fixed factory overhead associated with the increased labo $640 FMOH deferred in work in process Inventory ($1.00 x (2,280 - 1,640)] FMOH released from finished goods inventory ($1.00 X (1,050 - 850)] $200
