Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below Manufacturing costat Variable conta per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costa (total) Selling and administrative coats Variable Fixed (total) 201 20 5563,880 51 of sales $257,520 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fired manufacturing overhead. The tables sell for $508 each During the first month of operations, the following activity was recorded: Units produced Units sold 4,440 3,310 Required: 1. Compute the unit product cost under each of the following costing method. Unit Product Cost 348 a. Absorption costing b. Variable costing 221 2. Prepare an income statement for the month using absorption costing Do not leave any empty spaces: Input a wherever it is required.) Sales Cost of goods sold Less Cost of goods manufactured 0 O Operaing income $ 0 3. Prepare a contribution format income statement for the month using variable costing. Do not leave any empty spaces input a 0 wherever it is required.) Sales Variable expenses: Variable cost of goods sold: 0 0 0 0 Fixed expenses: 0 $ 0 4. Not available in Connect. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Variable costing operating income loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) $ Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below Manufacturing costat Variable conta per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costa (total) Selling and administrative coats Variable Fixed (total) 201 20 5563,880 51 of sales $257,520 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fired manufacturing overhead. The tables sell for $508 each During the first month of operations, the following activity was recorded: Units produced Units sold 4,440 3,310 Required: 1. Compute the unit product cost under each of the following costing method. Unit Product Cost 348 a. Absorption costing b. Variable costing 221 2. Prepare an income statement for the month using absorption costing Do not leave any empty spaces: Input a wherever it is required.) Sales Cost of goods sold Less Cost of goods manufactured 0 O Operaing income $ 0 3. Prepare a contribution format income statement for the month using variable costing. Do not leave any empty spaces input a 0 wherever it is required.) Sales Variable expenses: Variable cost of goods sold: 0 0 0 0 Fixed expenses: 0 $ 0 4. Not available in Connect. 5. Reconcile the absorption costing and variable costing operating income figures in (2) and (3) above. Variable costing operating income loss) Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing operating income (loss) $
