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please answer all requirements :) Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct
please answer all requirements :)
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month July August The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 21,000 21,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $5 10 3 3 $ 21 $ 126,000 166,000 $ 292,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. Units Sold 17,000 25,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July $ 901,000 408,000 493,000 217,000 $ 276,000 August $ 1,325,000 600,000 725,000 241,000 $ 484,000 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomesStep by Step Solution
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