Question: I need help with both Questions 1 & 2. Boston, Inc., planned and actually manufactured 240,000 units of its single product in 2017, its first

I need help with both Questions 1 & 2.


Boston, Inc., planned and actually manufactured 240,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $22 per unit produced. Variable operating (nonmanufacturing) cost was $8 per unit sold. Planned and actual fixed manufacturing costs were $480,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $380,000. Boston sold 130,000 units of product at $43 per unit. 1. Boston's 2017 operating income using absorption costing is (a) $1,050,000, (b) $830,000, (c) $1,210,000, (d) $1,430,000, or (e) none of these. Show supporting calculations. 2. Boston's 2017 operating income using variable costing is (a) $1,310,000, (b) $1,050,000, (c) $830,000, (d) $1,210,000, or (e) none of these. Show supporting calculations. Absorption costing Revenues Cost of goods sold: Variable manufacturing costs Fixed manufacturing costs Gross margin TUTTI Operating income Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Deduct ending inventory Fixed manufacturing costs Fixed operating costs pel Gross margin Revenues oo Variable manufacturing costs Variable operating costs parto ds
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