Managerial Accounting

| June 11, 2016

Question
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

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.

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