e File Edit Vew History Bookmarks People Window Help x 0) The Weoknd-call Out M

Question

e File Edit Vew History Bookmarks People Window Help x 0) The Weoknd-call Out M Secure Exam 2 Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: 2 Selling price Units in beginning inveatory Daits sold Unita in ending isventory 3,710 ,490 riable costs per unit S SD ng overhead Variable selling and adainistrative expense Pixed eosts rixed celling and sdainistrative 118,720 10,470 a. What is the unit product cost for the month under varisble costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using wariable costinyg d. Prepare an income statement for the month using absorption costing the variable costing and absorption costing net operating incomes for the month Complete this question by entering your answers in the tabs below Required A Required 8 Requined C Required DRequired E What is the unit product cest for the month under variable costing MacBook Air 4 5 6 8 9

Explanation / Answer

The Variable costing Unit Product cost Direct Material 47 Direct labour 50 Variable Manufacturing overheads 9 Variable costing unit prroduct cost 106 The Absorption Costing Unit Product Cost Direct Material 47 Direct labour 50 Variable Manufacturing overheads 9 Fixed Manufacturing overheads 32.00 (118720/3710) Absorption costing unit prroduct cost 138.00 The Variable Costing Income Statement: Sales 547,930 Less: Variable cost    variable cost of goods sold 369,940    Variable selling expense 38,390 408,330 Contribution margin 139,600 Fixed expense:    Fixed Manufacturing overheads 118,720    Fixed selling expense 10,470 Net operating Income 10,410 The Absorption Costing Income Statement Year 1 Sales $547,930 Cost of Goods sold 481620 Gross Margin $66,310 Selling and distribution expense Vvariable 38,390 Fixed 10,470 Net operating income 17,450 Reconciliation Statement: Nnet income as per variable costing 10410 Add: fixed OH deferred in Ending Inventory 7040 (220 units @ 32) Net Income as per Absorption costing 17450

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