Reference no: EM13510129
Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
|
|
| Selling price |
$ |
187 |
|
|
|
| Units in beginning inventory |
|
0 |
| Units produced |
|
3,180 |
| Units sold |
|
2,810 |
| Units in ending inventory |
|
370 |
|
|
|
| Variable cost per unit: |
|
|
| Direct materials |
$ |
52 |
| Direct labor |
$ |
58 |
| Variable manufacturing overhead |
$ |
15 |
| Variable selling and administrative |
$ |
17 |
| Fixed costs: |
|
|
| Fixed manufacturing overhead |
$ |
111,300 |
| Fixed selling and administrative |
$ |
8,430 |
|
Required:
a. What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the "tiny_mce_markerquot; sign in your response.)
Cost per unit
Variable costing $
b. What is the unit product cost for the month under absorption costing? (Omit the "tiny_mce_markerquot; sign in your response.)
Cost per unit
Absorption costing $
c. Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)
Variable Costing Income Statement
(Click to select) Sales Selling and administrative expenses Contribution margin Manufacturing overhead Net operating income (loss) Variable cost of goods sold Variable selling and administrative expenses $
Variable expenses:
(Click to select) Direct labor Net operating income Variable selling and administrative expenses Direct materials Contribution margin Variable cost of goods sold Sales $
(Click to select) Direct materials Variable cost of goods sold Direct labor Sales Contribution margin Net operating income Variable selling and administrative expenses
(Click to select) Contribution margin Sales Variable cost of goods sold Manufacturing overhead Selling and administrative expenses Net operating income (loss) Variable selling and administrative expenses
Fixed expenses:
(Click to select) Fixed selling and administrative expenses Variable selling and administrative expenses Contribution margin Variable cost of goods sold Net operating income Sales Fixed manufacturing overhead
(Click to select) Variable cost of goods sold Fixed manufacturing overhead Net operating income Variable selling and administrative expenses Fixed selling and administrative expenses Contribution margin Sales
(Click to select) Contribution margin Manufacturing overhead Variable selling and administrative expenses Variable cost of goods sold Selling and administrative expenses Sales Net operating income (loss) $
d. Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)
Absorption Costing Income Statement
(Click to select) Sales Cost of goods sold Net operating income (loss) Fixed selling and administrative expenses Variable selling and administrative expenses Gross margin $
(Click to select) Fixed selling and administrative expenses Cost of goods sold Sales Gross margin Net operating income (loss) Variable selling and administrative expenses
(Click to select) Net operating income (loss) Fixed selling and administrative expenses Gross margin Variable selling and administrative expenses Sales Cost of goods sold
Selling and administrative expenses:
(Click to select) Sales Variable selling and administrative expenses Cost of goods sold Fixed selling and administrative expenses Gross margin
Net operating income (loss) $
(Click to select) Fixed selling and administrative expenses Variable selling and administrative expenses Sales Gross margin Net operating income (loss) Cost of goods sold
(Click to select) Fixed selling and administrative expenses Net operating income (loss) Cost of goods sold Gross margin Sales Variable selling and administrative expenses $
e. Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the "tiny_mce_markerquot; sign in your response.)
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income
$
(Click to select) Deduct Add : (Click to select) Fixed manufacturing overhead costs deferred in inventory under absorption costing Fixed manufacturing overhead costs released from inventory under absorption costing
Absorption costing net operating income