FY Nestle & Sons, produces various dairy products and one of them is yogurt. The yogurt...
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FY Nestle & Sons, produces various dairy products and one of them is yogurt. The yogurt is sold in five-gallon containers, which have the following price and standard variable costs. Rs. 20.0 Sales price Direct material 8.0 Direct labor 2.0 Variable overhead 5.0 Budgeted fixed overhead in 2016 which was the first year of operations, was Rs. 450,000. Actual production was 225,000 five-gallon containers, of which 187,500 were sold. There were no variances recorded. The following selling and administrative expenses were incurred. Fixed Variable Rs. 75,000 for the year Rs. 1.0 per container sold Required: (a) (b) (c) (d) Compute the Standard Product Cost per container of yogurt under (a) Variable Costing and (b) Absorption Costing. Prepare Income Statements for 2016 using (a) Absorption Costing and (b) Variable Costing. Reconcile the income reported under the two methods by listing the two key places where the Income Statements differ. Reconcile the income reported under the two methods using the shortcut method. FY Nestle & Sons, produces various dairy products and one of them is yogurt. The yogurt is sold in five-gallon containers, which have the following price and standard variable costs. Rs. 20.0 Sales price Direct material 8.0 Direct labor 2.0 Variable overhead 5.0 Budgeted fixed overhead in 2016 which was the first year of operations, was Rs. 450,000. Actual production was 225,000 five-gallon containers, of which 187,500 were sold. There were no variances recorded. The following selling and administrative expenses were incurred. Fixed Variable Rs. 75,000 for the year Rs. 1.0 per container sold Required: (a) (b) (c) (d) Compute the Standard Product Cost per container of yogurt under (a) Variable Costing and (b) Absorption Costing. Prepare Income Statements for 2016 using (a) Absorption Costing and (b) Variable Costing. Reconcile the income reported under the two methods by listing the two key places where the Income Statements differ. Reconcile the income reported under the two methods using the shortcut method.
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a Compute the Standard Product Cost per container of yogurt under Variable Costing and Absorption Costing Variable Costing Standard Product Cost Direc... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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