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Compute the product cost per game produced under absorption costing and under variable costing.
| | October |
| | Absorption | Variable |
| | costing | costing |
| Total product cost per game | | |
| | November | |
| | Absorption | Variable | |
| | costing | costing | |
| | | | |
| | | | | | |
Requirement 2a. Prepare monthly income statements for
October
and
November,
including columns for each month and a total column, using absorption costing.
| Game Source |
| Absorption Costing Income Statement |
| | October | November | Total |
| | | | |
| | | | |
| | | | |
| | | | |
| Operating Income | | | |
Requirement 2b. Prepare monthly income statements for
October
and
November,
including columns for each month and a total column, using variable costing.
| Game Source |
| Variable Costing Income Statement |
| | October | November | Total |
| | | | |
| | | | |
| | | | |
| | | | |
| Operating Income | | | |
This is the data table for the question
Data Table
| | October | November |
| Sales | 2,000 units | 3,000 units |
| Production | 2,900 units | 2,900 units |
| Variable manufacturing cost per game | $12 | $12 |
| Sales commission cost per game | 3 | 3 |
| Total fixed manufacturing overhead | 14,500 | 14,500 |
| Total fixed selling and administrative costs | 8,500 | 8,500 |
Answer & Explanation
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