Munabhai Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling priceUnits in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrative expenseFixed costs:Fixed manufacturing overhead$ 1283456,8806,830395$ 42$ 23$ 3$ 19$ 165,120Fixed selling and administrative expense$ 95,620The company produces the same number of units every month, although the sales in units vary from month to month. The company'svariable costs per unit and total fixed costs have been constant from month to month.Required:a. Prepare a contribution format income statement for the month using variable costing.b. Prepare an income statement for the month using absorption costing.

Variable costing is a management accounting method that only considers variable costs, such as…

Answered: Required: a. Prepare a contribution…

Required: a. Prepare a contribution format income statement for the month using variable costing. D. Prepare an income statement for the month using absorption costing.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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Question

Munabhai

Nelter 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
$ 128
345
6,880
6,830
395
$ 42
$ 23
$ 3
$ 19
$ 165,120
Fixed selling and administrative expense
$ 95,620
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. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.

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