Denton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit:Direct materials.Direct laborVariable manufacturing overheadVariable selling and administrativeJulyAugustTotal variable cost per unit.Fixed costs per month:Fixed manufacturing overheadFixed selling and administrativeTotal fixed cost per monthThe product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow:UnitsProduced21,00021,000SalesCost of goods soldGross marginSelling and administrative expensesNet operating income.$ 311UnitsSold17,00025,000Required:1. Determine the unit product cost under:a. Absorption costing.b. Variable costing.41$ 19The company's Accounting Department has prepared the following absorption costing income statements for July and August:July$ 799,000408,000391,000183,000$ 208,000$ 126,000166,000$ 292,0002. Prepare variable costing income statements for July and August.3. Reconcile the variable costing and absorption costing net operating incomes.August$ 1,175,000600,000575,000191,000$ 384,000

Name: Denton Company manufactures and sells a single product. Cost data for
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Denton Company manufactures and sells a single product. Cost data for the product are given:Variable costs per unit:Direct materials.Direct laborVariable manufacturing overheadVariable selling and administrativeJulyAugustTotal variable cost per unit