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Please ignore the zeros, thanks. 1 Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods.
Please ignore the zeros, thanks.
1 Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: 2 04:20:19 Manufacturing costs! Variable coste per unit: Direct materials Variable manufacturing overhead Pixed manufacturing overhead costs (total) Selling and administrative costa: Variable Fixed (total) 193 22 $526,240 10 # of sales $333, 960 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $490 each During the first month f operations, the following activity was recorded: Units produced Units sold 5,060 3,830 Required: 1. Compute the unit product cost under each of the following costing method. Unit Product Cost a. Absorption costing b. Variable costing 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) Cost of goods sold: 0 0 0 0 3. Prepare a contribution format income statement for the month using variable costing. (Do not leave any empty spaces; input a O wherever it is required.) Variable expenses: Variable cost of goods sold: 0 0 o 0 Fixed expenses: 0 0 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Variable costing operating income (loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss)Step by Step Solution
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