Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:        Selling price $ 173          Units in beginning inventory   0    Units produced   3,510    Units sold   3,240    Units in ending inventory   270          Variable cost per unit:      Direct materials $ 47    Direct labor $ 56    Variable manufacturing overhead $ 12    Variable selling and administrative $ 14    Fixed costs:      Fixed manufacturing overhead $ 108,810    Fixed selling and administrative $ 9,720   Requi

Document Preview:

Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:??  ? ? ??  Selling price?$?173  ?? ? ? ??  Units in beginning inventory? ?0  ??  Units produced? ?3,510  ??  Units sold? ?3,240  ??  Units in ending inventory? ?270  ?? ? ? ??  Variable cost per unit:? ? ??  Direct materials?$?47  ??  Direct labor?$?56  ??  Variable manufacturing overhead?$?12  ??  Variable selling and administrative?$?14  ??  Fixed costs:? ? ??  Fixed manufacturing overhead?$?108,810  ??  Fixed selling and administrative?$?9,720  ???? Required:?? a.?What is the unit product cost for the month under variable costing? (Do not round intermediate calculations. Omit the “$” sign in your response.)??  ?Cost per unit??  Variable costing?$   ???? b.?What is the unit product cost for the month under absorption costing? (Omit the “$” sign in your response.)??  ?Cost per unit??  Absorption costing?$   ???? c.?Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)?? Variable Costing Income Statement??  ? ?$  ??  Variable expenses:? ? ??       ?$   ? ??       ? ? ?? ????  ? ? ??  Fixed expenses:? ? ??       ? ? ??       ? ? ?? ????  ? ?$  ?? ? ? ???? d.?Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)?? Absorption Costing Income Statement??  ? ?$  ??  ? ? ?? ? ???  ? ? ??  Selling and administrative expenses:? ? ??  ?$  ? ??  ? ? ?? ????  ? ?$  ?? ? ? ???? e.?Reconcile the variable costing and absorption costing net operating incomes for the month. (Omit the “$” sign in your response.)?? Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes??  Variable costing net operating income?$  ??  :…

Attachments: