Question: i need answer please 142 begin{tabular}{c|c|c|c|c|} A & B & C & D & 1. Assume that the company uses absorption costing: end{tabular} a.



142 \begin{tabular}{c|c|c|c|c|} A & B & C & D & \\ 1. Assume that the company uses absorption costing: \end{tabular} a. Compute the unit product cost for each year. (3 marks) Direct materiaks Direct labour Variable overhead Fixed overhead Unit product cost b. Prepare an income statement for each year. (6 marks) Sales Less cost of goods sold Beginning inventory Add cost of goods manufactured Cost of goods available for sale Less ending inventory Less cost of goods sold Gross margin Less selling and administrative expenses Operating income (loss) a. Compute the unit product cost for each year. (2 marks) Unit product cost b. Prepare an income statement for each year. (4 marks) 3. Reconcile the variable costing and absorption costing operating incomes (losses)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
