Denton Company manufactures and sells a single product. Cost data for the product are glven:
The product sells for $ per unlt. Production and sales data for July and August, the first two months of operations, follow.
tableUnits,UnitsProducedSold,JulyAugust
The company's Accounting Department has prepared the following absorption costing income statements for July and August:
tableJuly,,AugustSales$$Cost of goods sold,,Gross margin,,Selling and administrative expenses,,Net operating income,$$
Required:
Determine the unit product cost under:
a Absorption costing.
b Varlable costing.
Prepare varlable costing Income statements for July and August.
Reconcile the varlable costing and absorption costing net operating incomes.
Complete this question by entering your answers in the tabs below.
Required
Required
Determine the unit product cost under: a Absorption costing, b Variable costing.
tabletableUnit ProductCostaAbsorption costing,bVariable costing,
