Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 81 500 1,500 1,600 400 $ 19 $ 16 $ 1 $ 11 $22,500 $ 3,200 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing Absorption costing net operating income (loss) $ 28,700 6,000 $ 34,700
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $ 81 500 1,500 1,600 400 $ 19 $ 16 $ 1 $ 11 $22,500 $ 3,200 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing Absorption costing net operating income (loss) $ 28,700 6,000 $ 34,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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04:50:50
Pacheo Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative expense
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative expense
$ 81
500
1,500
1,600
400
$ 19
$ 16
$ 1
$ 11
$22,500
$ 3,200
The company produces the same number of units every month, although the sales in units vary from month to month. The company's
variable costs per unit and total fixed costs have been constant from month to month.
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the
reconciliation method.)
> Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the
reconciliation method.)
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income (loss)
Add: Fixed manufacturing overhead costs deferred in inventory under absorption costing
Absorption costing net operating income (loss)
$ 28,700
6,000X
$ 34,700
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