:- Variable & Absorption Costing Boedecker Corporation's operating data for the current year included the following: Selling
Question:
:- Variable & Absorption Costing
Boedecker Corporation's operating data for the current year included the following:
Selling and administrative expenses:
Variable $7.50 per unit sold
Fixed 400,000
Work in progress inventories Finished goods units:
Beginning inventory 10,000 units
Ending inventory 20,000 units
Produced 90,000 units
Sold 80,000 units
Standard manufacturing costs per
product unit: $9
Direct material 12
Direct labour 3
Variable overhead 6
Fixed overhead* $30
TOTAL
Selling price per product unit $45
* Based on denominator activity of 90,000 units and total fixed overhead of $540,000.
REQUIRED:
1.Prepare an income statement in good form, using variable costing.
2.Prepare an income statement, in good form, using absorption costing.
3.Reconcile (account for) any difference in net income between variable and absorption costing.
Expert Answer:
1 Income Statement using Variable Costing Boedecker Corporation Income Statement Variable Costing For the Current Year Sales Revenue 80000 units sold ... View the full answer
