Managerial Accounting $4$B

Nam

Test #$2($Ch$.5,6,7)$

Part $2.$ Problems. There are four problems. Each one is worth the score indicated next to the problem number. Show all work for complete credit. You may attach extra pages if you so desire. Please be NEAT when writing your answers. I cannot grade illegible answers. $(40$ points possible$)$

$(12$ points$)$ Penny Black Ltd$.,$ which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$$112$

Units in beginning inventory $q,$

Units produced $q,$

Units sold. $q,$

Units in ending inventory. $q,$

$0$

$25,100$

$22,320$

$q,$

$2,780$

Variable costs per unit:

Direct materials $q,$

Direct labor. $q,$

Variable manufacturing overhead. $q,$

Variable selling and administrative $q,$

$$41$

$$18$

$$9$

$$4\mathrm{.}50$

Fixed costs $($in total$)$:

Fixed manufacturing overhead $q,$ $$156,875$

Fixed selling and administrative $q,$ $$125,000$

Required:

a$.$ What is the unit product cost for the month under variable costing?

b$.$ What is the unit product cost for the month under absorption costing?

c$.$ Prepare an income statement for the month using the contribution format and the variable costing method.

d$.$ Prepare an income statement for the month using the traditional format and the absorption costing method.