(20 POINTS) Stetson Company, which has only one product, has provided the following data concerning...
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Accounting
(20 POINTS) Stetson Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
$122
Units in beginning inventory
0
Units produced
8,300
Units sold
8,200
Units in ending inventory
100
Variable costs per unit:
Direct materials
$27
Direct labour
$46
Variable manufacturing overhead
$4
Variable selling and administrative
$7
Fixed costs:
Fixed manufacturing overhead
$199,200
Fixed selling and administrative
$106,600
Required: a) What is the unit product cost for the month under variable costing? 3 POINTS b) What is the unit product cost for the month under absorption costing? 3 POINTS c) Prepare an income statement for the month using the contribution format and the variable costing method. 6 POINTS d) Prepare an income statement for the month using the absorption costing method. 6 POINTS e) Reconcile the variable costing and absorption costing operating incomes for the month. 2 POINTS
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