1 Linden Company manufactures and sells a single product. Cost data for the product follow: 2...

 
 
 
 
 
 
 

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1 Linden Company manufactures and sells a single product. Cost data for the product follow: 2 3 1 D 5 7 3 3 0 1 2 3: 4 5 B Product Cost Data Variable costs per unit Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 9 D 1 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 6. The product sells for $102 per unit. The company started July with no finished goods inventory. Production and sales data for July and August are as follows: 7 July August $20 36 Note: Some green and blue highlighted areas may not need to be used. 16 12 $84 $324,000 676,000 $1,000,000 Beginning inventory 0 8,000 Units Produced 54,000 48,000 Units Sold 46,000 52,000 Ending inventory 8,000 4,000 Note: Some green and blue highlighted areas may not need to be used. Required: 1. Determine the unit product cost under absorption costing and variable costing for July and August. (6 marks) Absorption Costing July August Unit product cost Variable Costing August July 2 B Prepare, in good form, operating income statements for Linden Company for August only using a) Absorption Costing. (6 marks) Operating income (loss) b) Variable Costing (5 marks) Operating income (loss) Supporting calculations Supporting calculations . Reconcile Linden Company's operating income reported under absorption and variable costing for August only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) Absorption costing operating income (loss) 1 Linden Company manufactures and sells a single product. Cost data for the product follow: 2 1 1 5 5 ✔ 3 D 0 1 2 3 4 5 7 3 Product Cost Data Variable costs per unit Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 3 D A Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 5 The product sells for $102 per unit. The company started July with no finished goods inventory. Production and sales data for July and August are as follows: $20 36 16 12 $84 July August Note: Some green and blue highlighted areas may not need to be used. $324,000 676,000 $1,000,000 Beginning inventory 0 8,000 Units Produced 54,000 48,000 Units Sold 46,000 52,000 Ending inventory 8,000 4,000 Required: 1. Determine the unit product cost under absorption costing and variable costing for July and August. (6 marks) Absorption Costing July August Unit product cost Variable Costing August July -7 2. 8 9 0 1 2 3 M 5 5 7 B " 1 · 1 J Prepare, in good form, operating income statements for Linden Company for August only using a) Absorption Costing. (6 marks) Operating income (loss) b) Variable Costing (5 marks) Operating income (loss) Supporting calculations Supporting calculations 3. 64 65 66 67 68 69 70 71 72 Reconcile Linden Company's operating income reported under absorption and variable costing for August only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) Absorption costing operating income (loss) 1 Linden Company manufactures and sells a single product. Cost data for the product follow: 2 3 1 D 5 7 3 3 0 1 2 3: 4 5 B Product Cost Data Variable costs per unit Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 9 D 1 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 6. The product sells for $102 per unit. The company started July with no finished goods inventory. Production and sales data for July and August are as follows: 7 July August $20 36 Note: Some green and blue highlighted areas may not need to be used. 16 12 $84 $324,000 676,000 $1,000,000 Beginning inventory 0 8,000 Units Produced 54,000 48,000 Units Sold 46,000 52,000 Ending inventory 8,000 4,000 Note: Some green and blue highlighted areas may not need to be used. Required: 1. Determine the unit product cost under absorption costing and variable costing for July and August. (6 marks) Absorption Costing July August Unit product cost Variable Costing August July 2 B Prepare, in good form, operating income statements for Linden Company for August only using a) Absorption Costing. (6 marks) Operating income (loss) b) Variable Costing (5 marks) Operating income (loss) Supporting calculations Supporting calculations . Reconcile Linden Company's operating income reported under absorption and variable costing for August only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) Absorption costing operating income (loss) 1 Linden Company manufactures and sells a single product. Cost data for the product follow: 2 1 1 5 5 ✔ 3 D 0 1 2 3 4 5 7 3 Product Cost Data Variable costs per unit Direct materials Direct labour Variable factory overhead Variable selling and administrative Total variable costs per unit 3 D A Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 5 The product sells for $102 per unit. The company started July with no finished goods inventory. Production and sales data for July and August are as follows: $20 36 16 12 $84 July August Note: Some green and blue highlighted areas may not need to be used. $324,000 676,000 $1,000,000 Beginning inventory 0 8,000 Units Produced 54,000 48,000 Units Sold 46,000 52,000 Ending inventory 8,000 4,000 Required: 1. Determine the unit product cost under absorption costing and variable costing for July and August. (6 marks) Absorption Costing July August Unit product cost Variable Costing August July -7 2. 8 9 0 1 2 3 M 5 5 7 B " 1 · 1 J Prepare, in good form, operating income statements for Linden Company for August only using a) Absorption Costing. (6 marks) Operating income (loss) b) Variable Costing (5 marks) Operating income (loss) Supporting calculations Supporting calculations 3. 64 65 66 67 68 69 70 71 72 Reconcile Linden Company's operating income reported under absorption and variable costing for August only. Be specific about where the difference in operating income comes from. (3 marks) Supporting calculations Variable costing operating income (loss) Absorption costing operating income (loss)