Question

rs 6-10 Saved Help Save & Exit Subm Check my work Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 192 Units in beginning inventory Units produced Units sold Units in ending inventory 4,eee 3,190 810 48 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense HA HA HA A $144,000 $ 12,760 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month usina variable costina. < Prey 2 of 5 ! Next > 12:48 PM 2/17/2020 Te to search 12

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Answer 1

192 Given Data: Selling Price Beginning Inventory Units Produced Units Sold Ending Inventory 4,000 3,190 810 Variable Costs : Direct Material Direct Labor Variable Manufacturing OH Variable Selling & Admin Exp. AA AA AAA Fixed Costs : Fixed Manufacturing OH Fixed Selling & Admin Exp. $ $ 1,44,000 12,760 Amount ($) a. Computation of the Unit Product Cost under Variable Costing. Particulars Direct Materials Direct Labor Variable Manufacturing OH Unit Product Cost Huu 60 121 Amount ($) b. Computation of the Unit Product Cost under Absorption Costing. Particulars Direct Materials Direct Labor Variable Manufacturing OH Fixed Manufacturing OH ($ 144,000 / 4,000) Unit Product Cost 60 157

$ Amount ($) $ 6,12,480 c. Preparation of Contribution format income statement using variable costing. Particulars Calculation Sales Revenue 3,190 Units @ $ 192 per Unit Less : Variable Costs Variable Manufacturing Cost 3,190 Units @ $ 121 per Unit Variable Selling and Admin Exp. 3,190 Units @ $ 16 per Unit Total Variable Costs $ $ 3,85,990 51,040 $ 4,37,030 Contribution $ 1,75,450 Less : Fixed Costs Fixed Manufacturing Cost Fixed Selling and Admin Exp. Total Fixed Costs Given Given $ $ 1,44,000 12,760 $ 1,56,760 Net Income $ 18,690 $ d. Preparation of income statement using Absorption costing. Particulars Calculation Sales Revenue 3,190 Units @ $ 192 per Unit Less : Cost of goods sold 3,190 Units @ $ 157 per Unit Gross Profit Less : Selling and Administrative Expenses - Variable 3,190 Units @ $ 16 per Unit - Fixed Given Net Profit Amount ($) $ 6,12,480 $ 5,00,830 $ 1,11,650 A to 51,040 12,760 $ $ 63,800 47,850 e. Reconcile the Net Operating Income between Variable Costing and Absorption Costing Net Operating Income. Particulars Amount ($) Variable Costing Net Operating Income $ 18,690 Fixed Manufacturing Cost in Closing Stock (810 Units * $ 36 per Unit) $ 29,160 Absorption Costing Net Operating Income $ 47,850