Maga 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.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.

Question

Maga 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.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.

Quizplus · Accepted Answer

The Answer of Maga 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.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.

Maga Company,which Has Only One Product,has Provided the Following Data