Q.1 Fujairah Corporation has provided the following information concerning its most recent month of operations: Selling price AED 150 Units in beginning inventory 1,000 Units produced 6,500 Units sold 5,500 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs in total: Fixed manufacturing overhead Fixed selling and administrative AED 50 AED 30 AED 10 AED 5 AED 130,000 AED 50,000 Assume direct labor is a variable cost. If Fujairah's ending inventory units are twice as those of the beginning inventory, determine the appropriate solution/answer to the following questions: Save an Save All Answers } Click Save and Submit to save and submit. Chek Save All Alsters to sow all waters. sty a. What is the unit product cost for the month under variable costing and under the absorption costing? (5 marks) Variable costing Absorption costing Unit product cost 20 points QUESTION 2 b. Prepare two Fujairah contribution format income statements for the month using first the variable costing, and then the absorption costing. (20 marks total, 10 marks each) Save All Answers Click Save and Submit to save and submit Click Save All Answers to save all answers. etv A JUN b. Prepare two Fujairah contribution format income statements for the month using first the variable costing, and then the absorption costing. (20 marks total, 10 marks each) Variable costing Income statement: I For Blank 10 Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers. )) tv JUN 28 Net operating income... Absorption costing Income statement: f For Blank 38 Net operating income. 5 points QUESTION 3 11 1 Save All Answers S Click Save and Submit to save and submit. Click Save All Answers to save all answers. tv JUN 28 Spolets c. Reconcile the variable costing and absorption costing net operating incomes (prepared in part b above) for the month (5 marks). (12) T Arial Path: P Words: Save QUESTION 4 5 points d. Assume that Fujairah Corporation produces the same number of units every month and that the beginning inventory is zero. If Fujairah sells all its 6,500 units produced during the month, which income statement will result in a higher net operating income: the statement prepared using the variable costing or the statement prepared using the absorption costing? Save All Answers San Click Save and Submit to save and submit. Chek Save All Answers to save all answers. etv & 8 QUESTION 4 5 points d. Assume that Fujairah Corporation produces the same number of units every month and that the beginning inventory is zero. If Fujairah sells all its 6,500 units produced during the month, which income statement will result in a higher net operating income: the statement prepared using the variable costing or the statement prepared using the absorption costing? Explain your answer (5 marks). Arial 3 (12pt) Words:0 Path:p 5 points Sav QUESTION 5 Save Save All Answers Click Save and Submit to save and submit Click Save All Answers to save all answers. etv Path: P Words QUESTION 5 5 points e. If Fujairah would like to adjust the selling price per unit, which statement should be used (variable costing or absorption costing)? Explain why (5 marks). 3 (12pt) T Arial Words:0 Path:p Save All Answers Save a Click Save and Submit to save and submit. Click Save All Answers to save all answers. ch Con tv & Q.1 Fujairah Corporation has provided the following information concerning its most recent month of operations: Selling price AED 150 Units in beginning inventory 1,000 Units produced 6,500 Units sold 5,500 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs in total: Fixed manufacturing overhead Fixed selling and administrative AED 50 AED 30 AED 10 AED 5 AED 130,000 AED 50,000 Assume direct labor is a variable cost. If Fujairah's ending inventory units are twice as those of the beginning inventory, determine the appropriate solution/answer to the following questions: Save an Save All Answers } Click Save and Submit to save and submit. Chek Save All Alsters to sow all waters. sty a. What is the unit product cost for the month under variable costing and under the absorption costing? (5 marks) Variable costing Absorption costing Unit product cost 20 points QUESTION 2 b. Prepare two Fujairah contribution format income statements for the month using first the variable costing, and then the absorption costing. (20 marks total, 10 marks each) Save All Answers Click Save and Submit to save and submit Click Save All Answers to save all answers. etv A JUN b. Prepare two Fujairah contribution format income statements for the month using first the variable costing, and then the absorption costing. (20 marks total, 10 marks each) Variable costing Income statement: I For Blank 10 Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers. )) tv JUN 28 Net operating income... Absorption costing Income statement: f For Blank 38 Net operating income. 5 points QUESTION 3 11 1 Save All Answers S Click Save and Submit to save and submit. Click Save All Answers to save all answers. tv JUN 28 Spolets c. Reconcile the variable costing and absorption costing net operating incomes (prepared in part b above) for the month (5 marks). (12) T Arial Path: P Words: Save QUESTION 4 5 points d. Assume that Fujairah Corporation produces the same number of units every month and that the beginning inventory is zero. If Fujairah sells all its 6,500 units produced during the month, which income statement will result in a higher net operating income: the statement prepared using the variable costing or the statement prepared using the absorption costing? Save All Answers San Click Save and Submit to save and submit. Chek Save All Answers to save all answers. etv & 8 QUESTION 4 5 points d. Assume that Fujairah Corporation produces the same number of units every month and that the beginning inventory is zero. If Fujairah sells all its 6,500 units produced during the month, which income statement will result in a higher net operating income: the statement prepared using the variable costing or the statement prepared using the absorption costing? Explain your answer (5 marks). Arial 3 (12pt) Words:0 Path:p 5 points Sav QUESTION 5 Save Save All Answers Click Save and Submit to save and submit Click Save All Answers to save all answers. etv Path: P Words QUESTION 5 5 points e. If Fujairah would like to adjust the selling price per unit, which statement should be used (variable costing or absorption costing)? Explain why (5 marks). 3 (12pt) T Arial Words:0 Path:p Save All Answers Save a Click Save and Submit to save and submit. Click Save All Answers to save all answers. ch Con tv &