80.2K

Verified Solution

Link Copied!

$1$

$15$

points

Sklpped

ebook

Print

Print

Leander Office Products Inc, produces and sells small storage and organizational products for office use. During the first month of operations, the products sold well. Andrea Leander, the owner of the company, was surprised to see a loss for the month on her income statement. This statement was prepared by a local bookkeeping service recommended to her by her bank manager. The statement follows:

$\backslash$table$[[\backslash$table$[[$LEANDER OFFICE PRODUCTS INC.$],[$Income Statement$]],],[$Sales $(41,400$ units$),$$$264,960,],[$Variable expenses:,$$126,684,],[$Variable cost of goods sold$*,48,438,175,122],[$Variable selling and administrative expenses,,$89,838],[$Contribution margin,$90,828,],[$Fixed expenses:,$14,490,105,318],[$Fixed manufacturing overhead,,$$(15,480)$

$1.$ Complete the following

a$)$ Compute the Unit product cost under absorption costing

b$)$ Redo the companies income statment for the month using absorption costing

c$)$ reconcile the variable and absorptioncosting operating income$($loss$)$ figures

$2.$ During the second month of operations, the company again produced $52,200$ units but sold $63,000$ units

a$)$ prepare a contribution format income statement for the month using variable costing

b$)$ prepare an income statement for the month using absorption costing

c$)$ reconcile the variable costing and absorption costing operating income figures.

Answer & Explanation Solved by verified expert

See Answer