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Great Outdoze Company manufactures sleeping bags, which sell for $65.80 each. The variable costs of production are as follows: Direct material $19.20 Direct labor 10.60 Variable manufacturing overhead 7.80 Budgeted fixed overhead in 20x1 was $226,800 and budgeted production was 28,000 sleeping bags. The year's actual production was 28,000 units, of which 25,200 were sold. Variable selling and administrative costs were $1.70 per unit sold: fixed selling and administrative costs were $29,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Prepare an operating income statement for the year using absorption costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Absorption Costing Sales revenue S 1,658,160 Less: Cost of goods sold Gross margin S 1,658,160 Selling and Administrative Expenses Variable selling and administrative Fixed selling and administrative Operating income S 1,658,160 Great Outdoze Company manufactures sleeping bags, which sell for $65.80 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.20 10.60 7.80 Budgeted fixed overhead in 20x1 was $226,800 and budgeted production was 28,000 sleeping bags. The year's actual production was 28,000 units, of which 25,200 were sold. Variable selling and administrative costs were $1.70 per unit sold; fixed selling and administrative costs were $29.000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing, 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Reg 3 Prepare an operating income statement for the year using variable costing. (Do not round intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement For the Year Ended December 31, 20x1 Variable Costing Variable expenses $ 0 Fixed expenses: Check my work 3 Budgeted fixed overhead in 20x1 was $226,800 and budgeted production was 28,000 sleeping bags. The year's actual production was 28,000 units, of which 25,200 were sold. Variable selling and administrative costs were $170 per unit sold; fixed selling and administrative costs were $29,000. 1 points Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method. eBook Print References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Reconcile reported operating income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.) Change in inventory (in units) Predetermined fixed overhead rate Absorption-costing income minus variable-costing income unit increase
