Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skinny Dippers Inc. produces nonfat frozen yogurt. The product is sold in ten-gallon containers, which have the following price and variable costs. $50 Sales price

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Skinny Dippers Inc. produces nonfat frozen yogurt. The product is sold in ten-gallon containers, which have the following price and variable costs. $50 Sales price Direct material Direct labor Variable overhead 18 12 12 Budgeted fixed overhead in 20x1, the company's first year of operations, was $270,000. Actual production was 90,000 ten-gallon containers, of which 81000 were sold. Skinny Dippers Inc incurred the following seling and administrative expenses Fixed Variable $ 90,000 for the year 2 per container sold Required: 1. Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing 2-a. Prepare an operating income statement for 20x1 using absorption costing. 2-b. Prepare an operating income statement for 20x1 using variable costing. 3. Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ, 4. Reconcile the operating income reported under the two methods using the shortcut method. Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing. Per Unit Product Cost a Variable costing b. Absorption costing Roq 1 Req 2A > Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req 3 Reg 4 Prepare an operating income statement for 20x1 using absorption costing. SKINNY DIPPERS INC. Absorption-Costing Operating Income Statement For the Year Ended December 31, 20X1 $ 0 Selling and Administrative Expenses Req 1 Reg 2A Req 2B Reg 3 Reg 4 Prepare an operating income statement for 20x1 using variable costing. SKINNY DIPPERS INC. Variable-Costing Operating Income Statement For the Year Ended December 31, 20X1 Variable expenses $ 0 Fixed expenses $ 0 Reg 1 Reg 2A Req 2B Reg 4 Reg 3 XXX Reconcile the operating income reported under the two methods by listing the two key places where the incomes differ. $ 0 Subtotal $ 0 Total $ 0 Difference in operating income Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Reconcile the operating income reported under the two methods using the shortcut method, Change in inventory (in units) units Predetermined fixed overhead rate per unit Difference in reported operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

12th Canadian edition

133098230, 978-0132791564, 132791560, 978-0133098235

More Books

Students also viewed these Accounting questions

Question

1. What is the IV in this study?

Answered: 1 week ago

Question

Explain internal recruitment methods.

Answered: 1 week ago

Question

Summarize job analysis for team members.

Answered: 1 week ago

Question

Describe the recruitment process.

Answered: 1 week ago