The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 32,200 Units sold 26,600 Selling price per unit $ 422 Selling and administrative expenses: Variable per unit $ 19 Fixed per year $ 452,200 Manufacturing costs: Direct materials cost per unit $ 259 Direct labor cost per unit $ 56 Variable manufacturing overhead cost per unit $ 34 Fixed manufacturing overhead per year $ 450,800 Assume that direct labor is a variable cost. Required: a. Compute the unit product cost under both the absorption costing and variable costing approaches. Cost per unit Absorption costing Variable costing b. Prepare an income statement for the year using absorption costing. Absorption Costing Income Statement 1,569,400 $611,800 c. Prepare an income statement for the year using variable costing. Variable Costing Income Statement 4) 5 Variable expenses: 9,788,800 1,436,400 Fixed expenses: 903,000 $533,400 d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Net operating income (loss) under variable costing Net operating income (loss) under absorption costing Please Provide all part answer it is a request
4)
The Dorset Corporation produces and sells a single product. The following data
refer to the year just completed:
Beginning inventory 0
Units produced 32,200
Units sold 26,600
Selling price per unit $ 422
Selling and administrative expenses:
Variable per unit $ 19
Fixed per year $ 452,200
Manufacturing costs:
Direct materials cost per unit $ 259
Direct labor cost per unit $ 56
Variable
Fixed manufacturing overhead per year $ 450,800
Assume that direct labor is a variable cost.
Required:
a. Compute the unit product cost under both the absorption costing and variable
costing approaches.
Cost per unit
Absorption costing
Variable costing
b. Prepare an income statement for the year using absorption costing.
Absorption Costing Income Statement
1,569,400
$611,800
c. Prepare an income statement for the year using variable costing.
Variable Costing Income Statement
4) 5
Variable expenses:
9,788,800
1,436,400
Fixed expenses:
903,000
$533,400
d. Reconcile the absorption costing and variable costing net operating income
figures in (b) and (c) above.
Reconciliation of Variable Costing and Absorption Costing
Net Operating Incomes
Net operating income (loss) under variable costing
Net operating income (loss) under absorption costing
Please Provide all part answer it is a request
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