Question

Please help me with this 4 requirements, and i need it by tonight. Thanks!

Saved Problem 6A-5 Super-Variable Costing, Variable Costing, and Absorption Costing Income Statements [L06-2, LO6-6] Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: $ 35 Variable cost per unit: Direet materials Fixed costs per year: Direct labor Pixed manufacturing overhead Pixed selling and administrative expenses $ 518,000 $ 464,800 $ 80,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Bracey produced 28,000 units and sold 25,500 units. The selling price of the company's product is $77 per unit. Required: 1. Assume the company uses super-variable costing: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 2. Assume the company uses a variable costing system that assigns $18.50 of direct labor cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 3. Assume the company uses an absorption costing system that assigns $18.50 of direct labor cost and $16.60 of fixed manufacturing overhead cost to each unit produced: a. Compute the unit product cost for the year. b. Prepare an income statement for the year. 4a. Reconcile the difference between the super-variable costing and variable costing net operating incomes. < Prev 4 of 4 13 Next >

Answer 1

Requirement 1A Unit product Cost 35.00 Requirement 1B Bracey Company Super Variable Costing Income Statement $ 1,963,500.00 $ 892,500.00 $1,071,000.00 Sales Variable cost of goods sold Contribution Margin Fixed expenses : Direct Labour Fixed Manfacturing Overhead Fixed Selling and Administrative expenses $ 518,000.00 $ 464,800.00 $ 80,000.00 $1,062,800.00 $ 8,200.00 Net Operating Income Requirement 2A Direct Material Direct Labour 35.00 18.50 Unit product Cost 53.50 Requirement 2B Bracey Company Variable Costing Income Statement $1,963,500.00 $ 1,364,250.00 $ 599,250.00 Sales Variable cost of goods sold Contribution Margin Fixed expenses : Fixed Manfacturing Overhead Fixed Selling and Administrative expenses $ 464,800.00 $ 80,000.00 $ 544,800.00 Net Operating Income $ 54,450.00

Requirement 3A Direct Material Direct Labour Fixed Manfacturing Overhead 35.00 18.50 16.60 Unit product Cost 70.10 Requirement 3B Bracey Company Absorption Costing Income Statement Sales cost of goods sold Gross Margin Fixed Selling and Administrative expenses Net Operating Income $ 1,963,500.00 $ 1,787,550.00 $ 175,950.00 $ 80,000.00 $ 95,950.00 Requirement 4A Super Variable Costing Net income Add: Direct Labour cost Deferred in Inventory under variable costing (28000-25500)*18.5 Variable Costing Net income $ $ 8,200.00 46,250.00 $ 54,450.00 Requirement 4B Super Variable Costing Net income Add: Direct Labour cost and Fixed MOH Deferred (28000-25500)*(18.5+16.60) Absorption Costing Net income $ $ 8,200.00 87,750.00 $ 95,950.00