Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please check my work and make any corrections you see fit :) Mahugh Corporation, which has only one product, has provided the following data concerning
Please check my work and make any corrections you see fit :)
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 190 Units in beginning inventory Units produced Units sold Units in ending inventory 0 3,280 3,170 110 Variable costs per unit: Direct materials $ 49 Direct labor $ 53 Variable manufacturing overhead $ 15 Variable selling and administrative $ 18 Fixed costs: 101,680 Fixed manufacturing overhead $ Fixed selling and administrative $12,680 Required: a. What is the unit product cost for the month under variable costing? (Do not round intermediate calculations.) Cost per unit Variable costing $ 117 b. What is the unit product cost for the month under absorption costing? Cost per unit Absorption costing $ 148 c. Prepare a contribution format income statement for the month using variable costing. $ 602,300 MAHUGH CORPORATION Variable Costing Income Statement Sales Variable expenses: Beginning merchandise inventory $ 0 Ending merchandise inventory 12,870 Variable cost of goods sold 383,760 Variable selling and administrative expense 47,550 Contribution margin Fixed expenses Fixed manufacturing overhead 101,680 Fixed selling and administrative expense 12,680 444,180 158,120 114,360 $ 43,760 Net operating income d. Prepare an income statement for the month using absorption costing. $ MAHUGH CORPORATION Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Variable selling and administrative expenses $ Fixed selling and administrative expenses 602.300 472,570 129,730 47,550 12.680 60.230 69,500 Net operating income $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started