Willie has the following data pertaining to its 1st quarter of operations: Activity level-units January February...
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Willie has the following data pertaining to its 1st quarter of operations: Activity level-units January February PRODUCTION 10,000 10,000 SALES Costs incurred in the different areas of operation were as follows: per unit Direct Materials Direct Labor Variable FOH Fixed FOH Variable selling and administrative Fixed selling and administrative 10,000 7,000 P 20 15 12 5 March per month P 60,000 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit. Required: 1. Compute the unit product cost under absorption costing and variable costing 2. Compute the cost of the ending inventory for February under absorption and variable costing. 3. Prepare an income statement for each month using absorption costing and variable costing. 4. Reconcile the net income under absorption and variable costing. 10,000 11,000 Willie has the following data pertaining to its 1st quarter of operations: Activity level-units January February PRODUCTION 10,000 10,000 SALES Costs incurred in the different areas of operation were as follows: per unit Direct Materials Direct Labor Variable FOH Fixed FOH Variable selling and administrative Fixed selling and administrative 10,000 7,000 P 20 15 12 5 March per month P 60,000 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit. Required: 1. Compute the unit product cost under absorption costing and variable costing 2. Compute the cost of the ending inventory for February under absorption and variable costing. 3. Prepare an income statement for each month using absorption costing and variable costing. 4. Reconcile the net income under absorption and variable costing. 10,000 11,000
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Here are the calculations 1 Unit product cost Absorption costing Direct Materials P20 Direct Labor P15 Variable FOH P12 Fixed FOH 1000030000P60000 P20 ... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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