question#2

The firm sales each toy for $70. Prepare an income statements based on: (a) variable costing (b) absorption costing

1. The Godzilla Company The Godzill 201 8 the firm produced exactly t a Company is a toy manufacture. The firm manufactures a specialty electronic toy. In firm produced exactly the number of units budgeted: 11,000,000 units. Furthermore, the budgeted and actual fixed costs are equal. The firm sold 10,000,000 units. dodzilla Company did not have an opening stock on 1 January 2018 but had closing stock on 31 December 2018 of 1,000,000 units. The following describes the per unit and total costs for 2018 Total costs ($) 220,000,000 165,000,000 55,000,000 11,000,000 8,000,000 17,000,000 Per unit (S) 20 15 Variable costs Direct materials Direct manufacturing labor Indirect manufacturing costs Direct marketing costs Indirect marketing costs 0.80 1.70 Fixed costs Direct manufacturing costs Indirect manufacturing costs 110,000,000 77,000,000 22,000,000 33,000,000 10 Direct marketing costs Indirect marketing costs 2.20 3.30 I. What is Godzilla Company's unit inventoriable costs under variable costing? Under Absorption costing? Clearly show your workings Variable costing Absorption costing Variable manufacturing Fixed manufacturing Total inventoriable costs