Absorption and Variable Costing Comparisons: Production Equals Sales

Assume that Smuckers manufactures and sells $30,000$ cases of peanut butter each quarter. The following data are available for the third quarter of $2017.$

Total fixed manufacturing overhead$$60,000$Fixed selling and administrative$20,000$Sales price per case$30$Direct materials per case$14$Direct labor per case$5$Variable manufacturing overhead per case$3$

Required

a$.$ Compute the cost per case under both absorption costing and variable costing.

$$ Absorption $Answer $1$

$$ Variable$$ $Answer $2$

b$.$ Compute net income under both absorption costing and variable costing.

Do not use a negative sign with your answers.

SMUCKERSAbsorption Costing Income StatementFor the Third Quarter of $2017$SalesAnswer $3$Answer $4$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $5$Answer $6$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $7$Answer $8$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $9$Net incomeAnswer $10$

SMUCKERSVariable Costing Income StatementFor the Third Quarter of $2017$SalesAnswer $11$Answer $12$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $13$Answer $14$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $15$Fixed expenses:Answer $16$Contribution marginCost of goods soldGross profitManufacturing overheadSelling& administrative expensesVariable costs of goods soldAnswer $17$Selling and administrativeAnswer $18$Answer $19$Net incomeAnswer $20$

$$

Please answer all parts of the question.