Please see the image for questions. Accounting for Management. I need answers/so

Question

Please see the image for questions. Accounting for Management. I need answers/solutions to all questions. Thanks!

1214/2017 Assignment Print View 3. Award: 15.00 points Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs per unit: Direct materials Direct labor Variable selling and administrative Total variable cost per unit S 19 Fixed costs per month Fixed selling and administrative Total fixed cost per month $ 45.000 163,000 $ 208,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow Units Sold 11,000 19,000 Units July 15,000 15,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales 550,000 950,000 380,000 570,000 201.000 145,000 369,000 Cost of goods sold 220,000 330,000 Gross margin Selling and administrative expenses Net operating income Required: 1. Determine the unit product cost under a. Absorption costing b. Variable costing 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.

Explanation / Answer

Prepare contribution format income statement :

July August Sales 550000 950000 Less: Variable cost of goods sold (187000) (323000) Gross contribution margin 363000 627000 Less: Variable selling and administrative exp (22000) (38000) Net contribution margin 341000 589000 Less: Fixed cost Manufacturing (45000) (45000) Selling and administrative (163000) (163000) Net operating income 133000 381000

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