Question

In: Accounting

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 direct labor is a variable cost.
Required:
a.

Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

       

b.

Prepare an income statement for the year using absorption costing.

       

c.

Prepare a contribution format 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

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related 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 34,500 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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT