Maher Corporation, which has only one product, has provided the following data for its last month of
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Question:
Maher Corporation, which has only one product, has provided the following data for its last month of operations:
Sale price | ps | 198 |
Units in beginning inventory | 0 | |
Units produced | 3,230 | |
units sold | 3,060 | |
Units in ending inventory | 170 | |
Variable costs per unit: | ||
Direct materials | ps | 55 |
Direct labour | ps | 55 |
Variable manufacturing overhead | ps | 14 |
Variable selling and administrative expenses | ps | 13 |
Fixed costs: | ||
Fixed manufacturing costs | ps | 109,820 |
Fixed and administrative sales | ps | 12,240 |
Required:
a. What is the unit cost of the product for the month under variable cost?
b. What is the unit cost of the product for the month under absorption cost?
c. Prepare a contribution-format income statement for the month using variable cost.
d. Prepare an income statement for the month using the absorption cost.
e. Reconcile variable costing and absorption costing to net operating income for the month.
Related Book For
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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