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Problem Solving Inventory Costing 27. The below is 2017 actual data for Nikon Company that assembles and sells electric equipment Selling price per equipment is
Problem Solving Inventory Costing 27. The below is 2017 actual data for Nikon Company that assembles and sells electric equipment Selling price per equipment is $6,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 units. There is no price, efficiency and spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs [Total 14 points: 4, 4, 4, 2) 2017 2017 (April) (May) Unit data Beginning inventory Production Sales 20 70 340 400 350 380 Variables Costs Manufacturing cost per unit produced Marketing cost per unit sold $2,000 $400 $2,000 $400 Fixed costs $600,000 $160,000 $600,000 $160,000 Manufacturing costs Marketing costs 27-1. Show a unit product cost under absorption and variable costing methods in April. 27-2. Prepare April and May 2017 income statement for Nikon Company under the absorption costing method (make it sure you record the production volume variance and clearly state whether it is favorable or unfavorable if there is any). Clearly show gross margin. 27-3. Calculate operating income under variable costing method, explain clearly where the difference in operating income between absorption and variable costing methods comes fr 27-4 What is variable cost per unit
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