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Please do all parts. Requirement 1. Compute the product cast per game producod under absorption costing and under variablo costing. cosling versus varable cowing In
Please do all parts.
Requirement 1. Compute the product cast per game producod under absorption costing and under variablo costing. cosling versus varable cowing In October, the operating income is higher under cosing the promary reason for this a hat ane distrituded scross the ense prodicton Play Time manufactures video games that it sels for $42 each. The company uses a fixed manufacturng ovechead allocation rate of $5 per game. Assume all costs and production liveis are exactly as planned. The following dota ace from Play Time's fint two months in business: (Cleck the kon to view the data) Read the tequirements. Requirement 1. Conpule the product cost per game producid under absorpton cosprig and under variable costing he icon to view the data.) Data table Requirements 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: a. absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the differences in inventory balances and the differences in operating income. Explain the differences in inventory balances based on absorption costing versus variable costing. costing versus varable costing in October, the ecerafing income is kigher undec cosina. The primsy reason for tis is that ire dstribued across the entre probuction run as part of the unt coat. Under the abeorpton costing method, of foed mansacturing overhead costs are In Noveinber, the operating income is higher under costing The primary reaton for bis is becaule af foed munufacturing ovechesd that is contaned in the units in ending mventacy As nvemory at was the cave in November, Octobers I The November's abovition coning incerve and the diflerences in operation income. Explain the afferences in inventery balances based on absorption costing verwis varisble costing of food mandacturivg overtead that is contained in the units in ending inventory under an was Thecase in Nowember, Oclober's It Ast inventery costs that absompion costing assigned to that invertory are umeotuled in This Navembers absocpton costing income The higher inventory balance under Wheress under varatie costing the diference in the product cos pee game is Step by Step Solution
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