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Maga Company, which has only one product, has provided the following data concerning its most recent month of operations: |
| Selling price | $ | 190 |
| Units in beginning inventory | 0 | |
| Units produced | 3,280 | |
| Units sold | 3,170 | |
| Units in ending inventory | 110 | |
| Variable cost per unit: | ||
| Direct materials | $ | 49 |
| Direct labor | $ | 53 |
| Variable manufacturing overhead | $ | 15 |
| Variable selling and administrative | $ | 18 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 101,680 |
| Fixed selling and administrative | $ | 12,680 |
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| Required: |
| a. |
What is the unit product cost for the month under variable costing? |
| b. |
What is the unit product cost for the month under absorption costing? |
| c. |
Prepare a contribution format income statement for the month using variable costing. |
| d. |
Prepare an income statement for the month using absorption costing. |
| e. |
Reconcile the variable costing and absorption costing net operating incomes for the month. |