Question 1: Need requirements A to H

Question 2: Need Requirements 2 and 3

E Homework: Ch 6 HW Question 4, E6-37A (simil.. Part 4 of 11 Requirements Majestic Industries has one product. Information about the production and sales of that product for the past year follow. (Click the icon to view the data.) The company had no beginning inventory, , Read the requirements. Data Table Operating income 1. Prepare two income statements for the year, one using absorption costing and one using variable costing. Use those statements to answer the following questions: What is the product cost per unit using absorption costing? b. What is the product cost per unit using variable costing? c. What is the ending Inventory balance using absorption costing? d. What is the ending inventory balance using variable costing? e. What is cost of goods sold using absorption costing? f. What is cost of goods sold using variable costing? 9. What is operating Income using absorption costing? h. What is operating income using variable costing? What is the underlying reason for the difference in operating income between the two costing methods? Now prepare the income statement for the year using variable costing. ... Selling price per unit.... S 52.00 Direct material per unit. S 14.00 Direct labor per unit. S 11.00 Total annual manufacturing overhead $ 180,000 Fixed portion of annual manufacturing overheads 72.000 Variable operating expenses per unit sold .......S 7.00 Fixed operating expenses per year in total..... S 49,000 Units manufactured ........... 18,000 Units sold 14,000 Majestic Industries Contribution Margin Income Statement (Variable Costing) For the Year Ended Sales revenue $ 728,000 Less: Variable expenses Variable cost of goods sold 434,000 Variable operating expenses 98,000 Contribution margin $ 195,000 Less: Fixed expenses Fixed manufacturing overhead 72,000 49,000 Fixed operating expenses $ Operating income 75,000 Print Done Print Done Use the statements you prepared to answer the following questions: 1a. $ 35.00 What is the product cost per unit using absorption costing? What is the product cost per unit using variable costing? 1b. Help Me Solve This Video Get More Help Clear All Check Answer E Homework: Ch 6 HW Question 5, E6-42A (simil... Part 4 of 6 HW Score: 88.45%, 9.73 of 11 points Requirements The annual data that follows pertain to Sea Down There, a manufacturer of swimming goggles (the company had no beginning inventory): (Click the icon to view the data.) Read the requirements. . 1. Prepare both conventional (absorption costing) and contribution margin (variable costing) income statements for Sea Down There for the year 2. Which statement shows the higher operating Income? Why? 3. The company marketing vice president believes a new sales promotion that costs $140,000 would increase sales to 205,000 goggles. Should the company go ahead with the promotion? Give your reason. Print Done Sea Down There Contribution Margin (Variable Costing) Income Statement For the Year Ended December 31 Sales revenue S 8.786.000 Less: Variable expenses Variable cost of goods sold S 3.438.000 Variable operating expenses 2.292.000 Contribution margin 3,056,000 Less: Fixed expenses Fixed manufacturing overhead 1.640,000 Fixed operating expenses 255.000 S 1.161,000 Operating income Sales price......... S 46 Variable manufacturing expense per unit... S 18 Sales commission expense per unit ..... S 12 Fixed manufacturing overhead S 1,640,000 Fixed operating expenses S 255,000 Number of goggles produced 205,000 Number of goggles sold 191,000 Requirement 2. Which statement shows the higher operating income? Why? Absorption costing operating income is higher than variable costing operating income. This is because absorption costing defers $ 112,000 of fixed manufacturing overhead as an asset in ending inventory. In contrast, variable costing expenses all of the fixed manufacturing overhead during the year. Variable costing expenses S 112,000 more costs during the year, so variable costing operating Income is $ [ less than absorption costing income the year. Print Done Help Me Solve This Video Get More Help Clear All Final Check