saveti The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: 29,700 22,700 $ 469 Beginning inventory Units produced Units sold Selling price per unit Selling and adninistrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year $ 20 $522,100 $ 206 $ 53 $ 37 $415,800 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Compute the unit product cost under both the absorption costing and variable costing approaches. Cost Per Unit Absorption costing Variable costing Resulted A Required B > 22,700 469 $ $ 20 $ 522,100 Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year $ 206 $ 53 $ 37 $415,800 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an income statement for the year using absorption costing. Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 0 Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing. d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prepare an income statement for the year using variable costing. Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Accounts receivable 0 0 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses 0 Net operating income 0 29,700 22,700 469 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses : Variable per unit Fixed per year Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead per year $ 20 $522,100 $ 206 $ 53 $ 37 $415,800 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare an income statement for the year using variable costing, d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Reconcile the absorption costing and variable costing net operating Income figures in (b) and (c) above. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Net operating income (loss) under variable costing Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing Net operating income (loss) under absorption costing
