How to do? Cost and Management AccountingIndividual Assignment 2Question 1Advance Products, Inc., has just organized a new division to manufacture and sell speciallydesigned bookshelves using select hardwoods for personal computers. The division's monthlycosts are shown in the schedule below:Manufacturing costs:Variable costs per unit:Direct materials .$172$8Variable manufacturing overheadFixed manufacturing overhead costs (total).. $240,000Selling and administrative costs:Variable.Fixed (total) .20% of sales$300,000Advance Products regards all of its workers as full-time employees and the company has along-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, thecompany includes its labor costs in its fixed manufacturing overhead. The bookshelf sell for$600 each.During the first month of operations, the following activity was recorded:Units produced .Units sold. 4,0003,000Required:1. Compute the unit product cost under:a. Absorption costing.b. Variable costing.2. Prepare an income statement for the month using absorption costing.3. Prepare a contribution format income statement for the month using variable costing.4. Reconcile the absorption costing and variable costing net operating incomes in (2) and (3)above.

Solution:- 1)a. Calculation of unit product cost under absorption costing as follows under:- Product…

Answered: Required: 1. Compute the unit product…

Required: 1. Compute the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare an income statement for the month using absorption costing.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...

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