UniCom produces a wide range of consumer electronics. UniComs Newark, New York, plant produces two types of
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Fixed manufacturing overhead amounted to $ 4 million in each year. At the start of 2012, there were no beginning inventories of either 2.4- GHz or 6.0- GHz cordless phones. UniCom uses FIFO to value inventories.
Required:
a. Prepare variable costing income statements for 2012 and 2013.
b. Prepare absorption costing income statements for 2012 and 2013. At the end of the year, fixed manufacturing overhead is absorbed to the two phone models using direct material as the allocation base.
c. Prepare a table that reconciles any differences in variable costing and absorption costing net incomes for 2012 and 2013.
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Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
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