7. Aubie Golf Company sells a special putter for $22 each. In April, it sold...
90.2K
Verified Solution
Link Copied!
Question
Accounting
7. Aubie Golf Company sells a special putter for $22 each. In April, it sold 30,000 putters while manufacturing 40,000. There was no beginning inventory on April 1. Production information for April was: $ 37,000 132,000 Fixed selling and administrative costs Fixed manufacturing overhead Direct materials cost per unit Direct manufacturing labor per unit Variable manufacturing overhead per unit Variable selling expenses per unit 7 4 Required: (10 points) a. Compute the cost per unit under both absorption and variable costing. b. Compute the ending inventories under both absorption and variable costing. c. Compute operating income under both absorption and variable costing. d. Explain why operating income is not the same under the two methods. Which method(s) are required for external reporting? For internal reporting? e. If a manager's bonus is based on operating income under absorption method, what can the manager do to increase operating income without increasing sales
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
