CoursHeroTranscribedText: Denton Company manufactures and sells a single product. Cost data for the product are...
80.2K
Verified Solution
Link Copied!
Question
Accounting
CoursHeroTranscribedText: Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials 5 4 Direct labor 9 Variable manufacturing overhead 4 Variable selling and administrative 3 Total variable cost per unit 5 20 Fixed costs per month: Fixed manufacturing overhead 5 108,000 Fixed selling and administrative 175,000 Total fixed cost per month 5 283,000 The product sells for $48 per unit. Production and sales data for July and August, the rst two months of operations, follow: Units Units Produced sold July 27,000 23,000 August 27,000 31,000 [ The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August sales $1,104,000 $ 1,488,000 Cost of goods sold 483,000 651,000 Gross margin 621,000 837,000 Selling and administrative expenses 244,000 268,000 Net operating income $ 377,000 569,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2' Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes
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!
