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Do Homework - eva yousif - Personal - Microsoft Edge X https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld=580667839&questionld=4&flushed=true&cld=6253128¢erwin=yes Acct 1090 - Prof. Edwards - Late Start Fall 2020 eva yousif & | 11/11/20 12:40 PM Homework: Week Five: Chapter 4 (managerial) Homework Problem Save Score: 2.07 of 3 pts 5 of 5 (5 complete) HW Score: 87.57%, 13.14 of 15 pts x PM4A-60A (similar to) Question Help Video King manufactures video games that it sells for $41 each. The company uses a fixed manufacturing overhead allocation rate of $5 per game. Assume all costs and production levels are exactly as planned. The following data are from Video King's first two months in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing. i Data Table - X October November Absorption Variable Absorption Variable October November costing costing costing costing Sales 1,300 units 3,000 units Total product cost per game $ 18 $ 13 $ 18 $ 13 Production 2,200 units 2,200 units Requirement 2a. Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing. Variable manufacturing cost per game $ 13 $ 13 6 6 Video King Sales commission cost per game Absorption Costing Income Statement Total fixed manufacturing overhead 11,000 11,000 October November Total Total fixed selling and administrative costs 10,500 0,500 Net Sales Revenue $ 53,300 $ 123,000 $ 176,300 Cost of Goods Sold 23,400 54,000 77,400 Print Done Gross Profit 29,900 69,000 98,900 Selling and Administrative Costs 18,300 28,500 46,800 Annrating Inmama $ 11,600 $ 40,500 52, 100 Choose from any list or enter any number in the input fields and then click Check Answer. ? 4 parts remaining Clear All Check Answer Type here to search O 12:40 PM 199 9 0 ENG 11/11/2020 EDo Homework - eva yousif - Personal - Microsoft Edge X https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld=580667839&questionld=4&flushed=true&cld=6253128¢erwin=yes Acct 1090 - Prof. Edwards - Late Start Fall 2020 eva yousif & | 11/11/20 12:41 PM Homework: Week Five: Chapter 4 (managerial) Homework Problem Save Score: 2.07 of 3 pts 5 of 5 (5 complete) HW Score: 87.57%, 13.14 of 15 pts x PM4A-60A (similar to) Question Help Video King manufactures video games that it sells for $41 each. The company uses a fixed manufacturing overhead allocation rate of $5 per game. Assume all costs and production levels are exactly as planned. The following data are from Video King's first two months in business: (Click the icon to view the data.) Read the requirements. Requirements - X Requirement 2b. Prepare monthly income statements for October and November, including columns for each month and a total column, using variable costing. Video King Variable Costing Income Statement 1. Compute the product cost per game produced under absorption costing and under variable costing. October November Total 2. Prepare monthly income statements for October and November, including Net Sales Revenue $ 53,300 $ 123,000 $ 176,300 columns for each month and a total column, using these costing methods 24,700 57,000 81,700 a. absorption costing. Variable Costs b. variable costing Contribution Margin 28,600 66,000 94,600 3. Is operating income higher under absorption costing or variable costing in Fixed Costs 21,500 21,500 43,000 October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. Operating Income 7, 100 44,500 51,600 Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the Requirement 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating inc differences in inventory balances and the differences in operating income Explain the differences in inventory balances based on absorption costing In October, the operating income is higher under absorption costing. The primary reason for this is that versus variable costing in absorption costing, the fixed manufacturing overhead costs are distributed across the entire production run as part of the unit cost. Under the absorption costing method, of fixed manufacturing overhead costs are Print Done not expensed and remain in Finished Goods Inventory. Choose from any list or enter any number in the input fields and then click Check Answer. ? 4 parts remaining Clear All Check Answer Type here to search O 99 9 O ENG 12:41 PM 11/11/2020 E
