Question
In: Accounting
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:
| Beginning inventory | 0 | |
| Units produced | 34,500 | |
| Units sold | 26,800 | |
| Selling price per unit | $ | 490 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 16 |
| Fixed per year | $ | 616,400 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 254 |
| Direct labor cost per unit | $ | 55 |
| Variable manufacturing overhead cost per unit | $ | 33 |
| Fixed manufacturing overhead per year | $ | 552,000 |
Assume that direct labor is a variable cost.
Required:
a. Compute the unit product cost under both the absorption costing and variable costing approaches.
b. Prepare an income statement for the year using absorption costing.
c. Prepare an income statement for the year using variable costing.
d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
30,300
Units sold
24,700
Selling price per unit
$
465
Selling and administrative
expenses:
Variable per unit
$
25
Fixed per year
$
469,300
Manufacturing costs:
Direct materials cost per
unit
$
211
Direct labor cost per unit
$
53
Variable manufacturing overhead
cost per unit
$
36
Fixed manufacturing overhead per
year
$
454,500
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory 0 Units produced 32,700 Units sold 27,100
Selling price per unit $ 459 Selling and administrative expenses:
Variable per unit $ 20 Fixed per year $ 406,500 Manufacturing
costs: Direct materials cost per unit $ 298 Direct labor cost per
unit $ 52 Variable manufacturing overhead cost per unit $ 30 Fixed
manufacturing overhead per year $ 425,100 Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,000
Units sold
28,700
Selling price per unit
$
409
Selling and administrative expenses:
Variable per unit
$
18
Fixed per year
$
602,700
Manufacturing costs:
Direct materials cost per unit
$
252
Direct labor cost per unit
$
55
Variable manufacturing overhead cost per unit
$
32
Fixed manufacturing overhead per year
$
646,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
31,700
Units sold
28,600
Selling price per unit
$
416
Selling and administrative expenses:
Variable per unit
$
22
Fixed per year
$
457,600
Manufacturing costs:
Direct materials cost per unit
$
240
Direct labor cost per unit
$
54
Variable manufacturing overhead cost per unit
$
37
Fixed manufacturing overhead per year
$
380,400
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,000
Units sold
24,000
Selling price per unit
$
466
Selling and administrative expenses:
Variable per unit
$
21
Fixed per year
$
336,000
Manufacturing costs:
Direct materials cost per unit
$
296
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit
$
34
Fixed manufacturing overhead per year
$
448,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation
produces and sells a single product. The following data refer to
the year just completed:
Beginning
inventory
0
Units
produced
34,500
Units sold
26,800
Selling price
per unit
$
490
Selling and
administrative expenses:
Variable per
unit
$
16
Fixed per
year
$
616,400
Manufacturing
costs:
Direct materials
cost per unit
$
254
Direct labor
cost per unit
$
55
Variable
manufacturing overhead cost per unit
$
33
Fixed
manufacturing overhead per year
$
552,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,300
Units sold
27,700
Selling price per unit
$
446
Selling and administrative expenses:
Variable per unit
$
20
Fixed per year
$
498,600
Manufacturing costs:
Direct materials cost per unit
$
259
Direct labor cost per unit
$
59
Variable manufacturing overhead cost per unit
$
35
Fixed manufacturing overhead per year
$
617,400
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
29,500
Units sold
20,400
Selling price per unit
$
469
Selling and administrative
expenses:
Variable per unit
$
19
Fixed per year
$
346,800
Manufacturing costs:
Direct materials cost per
unit
$
203
Direct labor cost per unit
$
50
Variable manufacturing overhead
cost per unit
$
30
Fixed manufacturing overhead per
year
$
442,500
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,000
Units sold
24,000
Selling price per unit
$
466
Selling and administrative expenses:
Variable per unit
$
21
Fixed per year
$
336,000
Manufacturing costs:
Direct materials cost per unit
$
296
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit
$
34
Fixed manufacturing overhead per year
$
448,000
Assume that...
The Dean Corporation produces and sells a single product. The following data refer to the year...
The Dean Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning
inventory
0
Units produced
29,700
Units sold
22,700
Selling price per
unit
$
469
Selling and
administrative expenses:
Variable per
unit
$
20
Fixed (total)
$
522,100
Manufacturing
costs:
Direct materials
cost per unit
$
206
Direct labor cost
per unit
$
53
Variable
manufacturing overhead cost per unit
$
37
Fixed manufacturing
overhead (total)
$
415,800
Assume that...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
- Create 5 short-term plan of technology projects that you can perform outside of an I.T. department...
- Derek plans to retire on his 65th birthday. However, he plans to work part-time until he...
- Toady and Froggy were running a vegan cafe together. The business was having financial difficulties.Betelguese, who...
- 1. The following questions concern Jesse Gelsinger who suffered from partial OTC. a. In the...
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...
- TzeMay was one of the first women engineering students at ABC University. She graduated in 1995...
ADVERTISEMENT