Read the requirements. Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing. October 2018 Variable Absorption costing costing Total product cost per game November 2018 Absorption Variable costing costing Requirement 2a. Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing. Game Depot Absorption Costing Income Statement October 2018 November 2018 Total Operating Income Game Depot Absorption Costing Income Stater October 2018 Novo Contribution Margin Cost of Goods Sold Fixed Costs Gross Profit Net Sales Revenue Selling and Administrative Costs Variable Costs parts remaining mber in the input fields 6 12,900 $ 28,500 400 Operating Income Requirement 2b. Prepare monthly income statements for October and November, including columns fc Game Depot Variable Costing Income Statement October 2018 November 2018 Total Operating Income Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Requirement 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operatir In October, the operating income is higher under costime. The primary reason for this is that run as part of the unit cost. Under the absorption absorption variable costing. The primary reason f In October, the operating income is higher under are distributed of fixed manufa: in absorption costing, the fixed manufacturing overhead costs in absorption costing, the fixed selling and administrative costs in variable costing, the fixed manufacturing overhead costs in variable costing, the fixed selling and administrative costs eck Answer 4 parts remaining Requirement 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of difference In October, the operating income is higher under costing. The primary reason for this is that are distributed across the entire production run as part of the unit cost. Under the absorption costing method, $ of fixed manufacturing overhead costs are eck Answer. expensed as part of Cost of Goods Sold. not expensed and remain in Finished Goods Inventory. remaining porno Clear All In November, the operating income is higher under costing. The primary reason for this is becarse $ of fixed manufacturing overhead that is contained in the units in ending inventory under As inventory as was the case in November, October's costs that absorption costing assigned to that inventory are expensed in This November's absorption costing income. Requirement 4. Determine the balance in Finished Goods Inventory on October 3. Explain the differences in inventory balances based on absorption costing versus October 31, 2018 Absorption Variable costing costing Finished Goods Inventory Enter any number in the edit fields and then click Check Answer. 2 parts remaining atory on October 31 and November 30 under absorption costing and v n costing versus variable costing. November 30, 2018 Variable Absorption costing costing ver. Clear All The higher inventory balance under per game is representative of the whereas under variabile conting the difference in the product cost per games Under sin costing the difference in the productos Click to set your answers) and then click Check Answer All parts showing Clear All Check Answer the Under absorption cos edifi fixed costs that are expensed in absorption costing, but contained in inventory under variable costing. fixed costs that are expensed in variable costing, but contained in inventory under absorption costing. Clear All MacBook Pro The higher inventory balance under is representative of the per game is whereas under variable costing, the d Click to selec contained in the inventory heck Answer. All parts sho expensed as a period cost oduct cost per game is contained in the inventory Cle expensed as a period cost MacBook Pro X P21-28A (similar to) Question Help Game Source manufactures video games that it solls for $40 each. The company uses a fixed manufacturing overhead location rate of 36 per game. Assume all costs and production levels are exactly as planned. The following data are from Game Source's first two months in business during 2018: Click the icon to view the data) Read the requirements Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing October 2018 Absorption Variable costing costing Total product cost per game ework 2 of 3 (3 complete) e company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and - Requirements absor 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: a. absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and priable costing. Compare the differences in inventory balances and the differences in operating income. Explain the differences in inventory balances based on absorption costing versus variable costing. Print Done Clear All ework 2 of 3 (3 complete) e company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and produ abs Data Table - X October November Sales 2,000 units 2,700 units 3,000 units 2,700 units $ 15 $ 15 Production Variable manufacturing cost per game Sales commission cost per game Total fixed manufacturing overhead Total fixed selling and administrative costs 3 3 16,200 16,200 10,500 10,500 Print Done Clear All