Problem 8-35 Variable-Costing and Absorption-Costing Income Statements (LO 8-2, 8-3, 8-4, 8-6) Great Outdoze Company manufactures sleeping bags, which sell for $65.50 each. The variable costs of production are as follows: ints Direct material Direct labor Variable manufacturing overhead $18.30 10.70 6.20 eBook Print Budgeted fixed overhead in 20x1 was $165,600 and budgeted production was 24,000 sleeping bags. The year's actual production was 24.000 units, of which 20,600 were sold. Variable selling and administrative costs were $1.20 per unit sold: fixed selling and administrative costs were $25,000. 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. References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Reg 3 Calculate the product cost per sleeping bag under (*) absorption costing and (b) variable costing. (Do not round Intermediate calculations. Round your final answers to 2 decimal places.) Product Cost Por Unit Absorption couting Variable conting Reg 2A > Me LAN BRE Great Outdoze Company manufactures sleeping bags, which sell for $65.50 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $18.30 10.70 6.20 Budgeted fixed overhead in 20x1 was $165,600 and budgeted production was 24,000 sleeping bags. The year's actual production was 24,000 units, of which 20,600 were sold. Variable selling and administrative costs were $1.20 per unit sold: fixed selling and administrative costs were $25,000. 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. 5 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3 Prepare an operating income statement for the year using absorption costing. (Do not round Intermediate calculations.) GREAT OUTDOZE, INC. Operating Income Statement Et the Year Ended December 31, 20x1 Absorption Costing Sales revenue Less: Cost of goods sold Gross margin $ Selling and Administrative Expenses Fixed selling and administrative Variable selling and administrative 0 $ Operating income 0 Req1 Reg 28 > Direct material Direct labor Variable manufacturing overhead $18.30 10.70 6.20 Budgeted fixed overhead in 20x1 was $165,600 and budgeted production was 24,000 sleeping bags. The year's actual production was 24,000 units, of which 20,600 were sold. Variable selling and administrative costs were $1.20 per unit sold; fixed selling and administrative costs were $25,000 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, Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 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 Sales revenue Variable expenses; Variable manufacturing costs Variable selling and administrative costs C $ 0 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative costs 0 $ Problem 8-35 Variable-Costing and Absorption-Costing Income Statements (LO 8-2, 8-3, 8-4, 8-6) Great Outdoze Company manufactures sleeping bags, which sell for $65.50 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $18.30 10.70 6.20 Budgeted fixed overhead in 20xt was $165,600 and budgeted production was 24,000 sleeping bags. The year's actual production was 24,000 units, of which 20,600 were sold. Variable selling and administrative costs were $1.20 per unit sold; fixed selling and administrative costs were $25,000. 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 2A Reg 28 Reg 1 Reg 3 Reconcile reported operating Income under the two methods using the shortcut method. (Round your predetermined fixed overhead rate to 2 decimal places.) x Change in inventory (in units) Predetermined fixed overhead rate Absorption costing income minus variable-costing income unit increase
