FUND.OF COST ACCT >CUSTOM<
6th Edition
ISBN: 9781307515565
Author: LANEN
Publisher: MCG/CREATE
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Textbook Question
Chapter 2, Problem 52E
Components of Full Costs
Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:
Required
Determine each of the following:
- a. Variable cost.
- b. Variable
manufacturing cost . - c. Full absorption cost.
- d. Full cost.
- e. Profit margin.
- f. Gross margin.
- g. Contribution margin
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Required:
1. Determine the unit product cost under:
a. Absorption costing.
b. Variable costing.
2. Prepare variable costing income statements for July and August.
3. Reconcile the variable costing and absorption costing net operating incomes.
Test II. MATCHING
Match the type of income statement to the costs it includes.a. Variable costing income statementb. Absorption costing income statementc. Both types of income statements
1. Direct materials for units sold2. Direct labor for units sold3. Variable overhead for units sold4. Fixed factory overhead for the period5. Only fixed factory overhead for units sold6. Variable selling expense7. Fixed selling expense8. Administrative expense
Accounting records for The Ralston Company show the following for the most recent fiscal year.
Units produced and sold
Total revenues and costs
Sales revenue
Direct materials costs
Direct labor costs
Variable manufacturing overhead
Fixed manufacturing overhead
Variable marketing and administrative costs
Fixed marketing and administrative costs
Required:
a. Prepare a gross margin Income statement.
b. Prepare a contribution margin Income statement.
Required A Required B
Complete this question by entering your answers in the tabs below.
Prepare a gross margin income statement.
Gross Margin Income Statement
59,500
Chapter 2 Solutions
FUND.OF COST ACCT >CUSTOM<
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