EXERCISE 7?5 Variable Costing Unit Product Cost and Income Statement; Break-Even

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow:

Required:

Assume that the company uses variable costing. Compute the unit product cost for one computer desk.

Assume that the company uses variable costing. Prepare a contribution format income statement for the year.

What is the company's break-even point in terms of units sold?

EXERCISE 7?6 Absorption Costing Unit Product Cost and Income Statement

Refer to the data in Exercise 7-5 for CompuDesk. Assume in this exercise that the company uses absorption costing.

Required:

Compute the unit product cost for one computer desk.

Prepare an income statement for the year.

Reconcile the different net incomes under the two different costing methods

What is the breakeven point under absorption costing?

EXERCISE 7-5 Variable Costing Unit Product Cost and Income Statement; Break-Even CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow: Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one computer desk. 2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year. 3. What is the company's break-even point in terms of units sold? EXERCISE 7-6 Absorption Costing Unit Product Cost and Income Statement Refer to the data in Exercise 7-5 for CompuDesk. Assume in this exercise that the company uses absorption costing. Required: 1. Compute the unit product cost for one computer desk. 2. Prepare an income statement for the year. 3. Reconcile the different net incomes under the two different costing methods 4. What is the breakeven point under absorption costing