er Com Delta Copy WIB CLICK HERE TO SAVE YOUR WORK 4 A 1 Cost and revenue data concerning Proctor Corporation's operations first two years appear below: 2 3 Selling price per unit $70 Variable costs per unit: 5 Direct materials $25 6 Direct labour 10 7 Variable manufacturing overhead 4 8 Variable selling and administrative 8 0 Fixed costs in total: 1 Fixed manufacturing overhead 2 Fixed selling and administrative 3 Data regarding units produced and sold for the first two years follow: $220,500 75,000 Year 1 Year 2 Units in beginning inventory Units produced Units sold Units in ending inventory 0 10,500 9,000 1,500 1,500 10,000 10,600 900 Note: Some green and blue highlighted areas may not need to be used. Note: Some green and blue highlighted areas may not need to be used. 23 24 Required: 25 1. Determine the unit product cost under absorption costing and variable costing for Year Land Year 2. (6 marks) 26 27 Absorption Costing Variable Costing 28 Year 1 Year 2 Year 1 Year 2 30 31 2 3 4 5 Unit product cost 2. Prepare, in good form, operating income statements for Proctor Corporation for Year 2 only using a) Absorption Costing. (6 marks) 3 Supporting calculations A D 2. Prepare, in good form, operating income statements for Proctor Corporation for Year 2 only using a) Absorption Costing. (6 marks) Supporting calculations Operating income (loss) b) Variable Costing (5 marks) Supporting calculations ACV03 New 57 58 59 60 61 62 Operating income (loss) 63 3. 64 Reconcile Proctor Corporation's operating income reported under absorption and variable costing for Year 2 only. Be specific about where the difference in operating income comes from. (3 marks) 65 Supporting calculations 66 Variable costing operating income (loss) 67 68 69 70 71 12 Absorption costing operating income (loss) 3 I ACVC - 3 New hp