Question: Please help with requirement 2B and 3 if possible... Data Table January 1,600 meals 2,000 meals February 1,900 meals 1,600 meals Sales Production Variable manufacturing


Data Table January 1,600 meals 2,000 meals February 1,900 meals 1,600 meals Sales Production Variable manufacturing expense per meal Sales commission expense per meal Total fixed manufacturing overhead Total fixed marketing and administrative expenses 800 Print Done Question Help Mark's Meals produces frozen meals, which itsells for $9 each The company uses the FIFO inventory costing method, and it computes a new month fed manufacturing overhead rate based on the actual number of meals produced that month Al costs and production levels are exactly as planned The following date from the company's first two months in business Click the icon to view the data) Requirements 1. Compute the product cost per meal produced under absorption costing and under variable costing Do this first for January and then for February 2. Prepare separate monthly income statements for January and for February, using the following a. Absorption costing b. Varble costing 3. Is operating income higher under absorption costing or variable costing in January? In February Explain the pattom of differences in operating income based on absorption costing versus varate costing Requirement 2b. Prepare Mark's Meals January and February income statements using variable costing. Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 Sales revenue Less: Variable expenses February 28 Contribution margin Fixed manufacturing overhead Less Fixed operating expenses Operating income
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
