ezto.mheducation.com/hm.tpx 2-Exam-Part 2 Packer Company, which has only one pro

Question

ezto.mheducation.com/hm.tpx 2-Exam-Part 2 Packer Company, which has only one product, has provkted the following data concerning its most recent month of operations Selling price $ 94 Units in beginning inventory Units produced Units sok Units in ending inventory 320 2,660 850 Variable cost per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs $ 23 S 16 s 19 Fixed manufacturing averhead Fixed selling and administrative 61,180 s 6.330 The company produces the same number of units every monn, although the sales in units vary from month to month. The company's variable coets per unit and total fixed costs have been constant from month to month Required: a. What s the unit product cost for the month under variable costing? (Omit the sign in your Cost per unt Vatiable costing b. Prepare a cont butionrmat roome statement for the month using vaiate costrg pnput 11 amounts as positive values except losses which should be indicated by a minus sign. Omit the s" sign in your response.) Variable Costing Income Statement Click to select) Variable expenses (Cick to sekact) Click to selact) (Click to select) Flxed expenses Click to sekct) (Cick to select) G, Without preparing an income statement, determine the absorption costing net operating income for the month. (Omit the "S" sign in your response.) Reconciiation of Variable Cosing and Abscrption Costing Nel Operating Incomes Varlable cosing net operating ircome (Click to seleal)Click to select Absception costing net operating income O Type here to search

Explanation / Answer

a Unit Product Cost Under Variable Costing A Direct material cost per unit $23 B Direct lobor cost per unit $16 C Variable manufacturing overheadper unit $1 D Variable Selling & Admin. overheadper unit $19 E=A+B+C+D Total Variable Costs per unit $59 Cost per unit Variable Costing $59 b Variable Costing Income Statement S Sales revenue $        200,220 (94*2130) Variable expenses F=A*2130 Direct material cost $48,990 G=B*2130 Direct lobor cost $34,080 H=C*2130 Variable manufacturing overhead $2,130 I=D*2130 Variable Selling & Admin. Overhead $40,470 J=F+G+H+I Total Variable costs $125,670 K=S-J Contribution Margin $          74,550 Fixed Expenses L Fixed manufacturing overhead $61,180 M Fixed selling & admin. Overhead $            6,390 N=L+M Total fixed expenses $67,570 P=K-N Net Operating Income $            6,980 c. ABSORPTION COSTING NET OPERATING INCOME A Variable costing net operating income $            6,980 B Difference in ending inventory $          12,190 C=A+B Absorption costing net operating income $          19,170 Increase in inventory 530 (850-320) Fixed manufacturing overhead absorbed by ending inventory: (61180/2660)*530 Difference in ending inventory=(61180/2660)*530 $          12,190 Cost of production per unit under absorption costing (23+16+1+(61180/2660) Cost of production per unit under absorption costing 63 Cost of goods sold=63*2130 134190 Selling & admin overhead variable 40470 (2130*19) Fixed selling & admin 6390 Total cost 181050 Net operating income=200220-181050 19170

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.