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5-181
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182. Leigh Company, which has only one product, has provided the following data concerning
its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary
from month to month. The company's variable costs per unit and total fixed costs have been
constant from month to month.
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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183. Qu Company, which has only one product, has provided the following data concerning its
most recent month of operations:
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating
income for the month. (Hint: Use the reconciliation method.)
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184. Packer Company, which has only one product, has provided the following data concerning
its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary
from month to month. The company's variable costs per unit and total fixed costs have been
constant from month to month.
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating
income for the month. (Hint: Use the reconciliation method.)
185. Hubiak Corporation produces a single product and has the following cost structure:
Required:
Compute the unit product cost under absorption costing. Show your work!
186. Hudalla Corporation produces a single product and has the following cost structure:
Required:
Compute the unit product cost under variable costing. Show your work!
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187. Fellner Corporation produces a single product and has the following cost structure:
Required:
a. Compute the unit product cost under absorption costing. Show your work!
b. Compute the unit product cost under variable costing. Show your work!
188. Bertone Inc., which produces a single product, has provided the following data for its
most recent month of operation:
The company had no beginning or ending inventories.
Required:
Compute the unit product cost under variable costing. Show your work!
189. Krasnow Inc., which produces a single product, has provided the following data for its
most recent month of operation:
The company had no beginning or ending inventories.
Required:
Compute the unit product cost under absorption costing. Show your work!
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190. Cuffee Inc., which produces a single product, has provided the following data for its most
recent month of operation:
The company had no beginning or ending inventories.
Required:
a. Compute the unit product cost under absorption costing. Show your work!
b. Compute the unit product cost under variable costing. Show your work!
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191. UHF Antennas, Inc., produces and sells a unique television antenna. The company has
just opened a new plant to manufacture the antenna, and the following cost and revenue data
have been reported for the first month of the new plant's operation:
Management is anxious to see how profitable the new antenna will be and has asked that an
income statement be prepared for the month. Assume that direct labor is a variable cost.
Required:
a. Assuming that the company uses absorption costing, compute the unit product cost and
prepare an income statement.
b. Assuming that the company uses variable costing, compute the unit product cost and prepare
an income statement.
c. Explain the reason for any difference in the ending inventories under the two costing methods
and the impact of this difference on reported net operating income.
