Long Long Co. just completed its first year of operation with following financial data: i) ii)...

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Long Long Co. just completed its first year of operation with following financial data: i) ii) 111) iv) Produced 30,000 units of Product L and sold 24,000 units at unit selling price $80 per unit. A companywide overhead rate based on number of units produced is used to allocate manufacturing overhead. The production costs include direct material costs $16 per unit, direct labor costs $24 per unit and annual fixed manufacturing overhead cost $240,000. Non-manufacturing costs include annual fixed selling and administrative cost $40,000 and variable selling and administrative cost as $2 per unit sold. REQUIRED: a) Prepare the income statement under absorption costing approach. b) Identify the period cost under absorption costing approach. c) Identify the inventoriable cost under absorption costing approach. d) Calculate the income under variable costing approach. (30 marks) (3 marks) (6 marks) (8 marks) Long Long Co. just completed its first year of operation with following financial data: i) ii) 111) iv) Produced 30,000 units of Product L and sold 24,000 units at unit selling price $80 per unit. A companywide overhead rate based on number of units produced is used to allocate manufacturing overhead. The production costs include direct material costs $16 per unit, direct labor costs $24 per unit and annual fixed manufacturing overhead cost $240,000. Non-manufacturing costs include annual fixed selling and administrative cost $40,000 and variable selling and administrative cost as $2 per unit sold. REQUIRED: a) Prepare the income statement under absorption costing approach. b) Identify the period cost under absorption costing approach. c) Identify the inventoriable cost under absorption costing approach. d) Calculate the income under variable costing approach. (30 marks) (3 marks) (6 marks) (8 marks)

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a The income statement under absorption costing approach is as follows Sales revenue 24000 units x 8... View the full answer