Question: Can you please help me solve this question with full working out In the coming year, Kalling Company expects to sell 28,700 units at $32

Can you please help me solve this question with full working out

In the coming year, Kalling Company expects to sell 28,700 units at

In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling's controller provided the following information for the coming year. Units production Direct materials (per unit) Direct labour (per unit) Variable overhead (per unit) Fixed overhead (per unit)* Selling expense (per unit) Selling expense (fixed) Administrative expense (fixed) 30,000 $9.95 $2.75 $1.65 $2.50 $2.00 $65,500 $231,000 *The fixed overhear per unit is based on 30,000 units produced Required: 1. Calculate the cost of one unit of product under absorption costing. [2 MARKS] 2. Calculate the cost of one unit of product under variable costing. [2 MARKS] 3. Calculate operating income under absorption costing for next year. [4 MARKS] 4. Calculate operating income under variable costing for next year. [4 MARKS] 5. Reconcile the net profits obtained under both the methods by using short-cut method [1 MARK] 6. The volume of manufacturing in a period has an effect on income calculated using absorption costing but has no effect on income calculated using variable costing. Explain. [2 MARKS]

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