Question

Moffett Company reports the following information for March​.

Net Sales Revenue	$78,950
Variable Cost of Goods Sold	22,250
Fixed Cost of Goods Sold	9,300
Variable Selling and Administrative Costs	17,000
Fixed Selling and Administrative Costs	6,400

Requirement 1. Calculate the gross profit and operating income for March using absorption costing.

Moffett Company
Income Statement (Absorption Costing)
For the Month Ended March 31
Operating Income

Requirement 2. Calculate the contribution margin and operating income for March using variable costing.

Moffett Company
Income Statement (Variable Costing)
For the Month Ended March 31
Operating Income

and,

Vong Company reports the following​ data:

Finished Goods Inventory:
Beginning balance, in units	700
Units produced	2,800
Units sold	(1,400)
Ending balance, in units	2,100
Production Costs:
Variable manufacturing costs per unit	$60
Total fixed manufacturing costs	44,800

Calculate the product cost per unit and the total cost of the

2 comma 1002,100

units in ending inventory using absorption costing and variable costing.

Calculate the cost per unit using absorption costing and variable costing. ​(If a box is not used in the table leave the box​ empty; do not enter a​ zero.)

	Absorption	Variable
	Costing	Costing
Total unit product cost

Calculate the total cost of the 2,100 units in ending inventory using absorption costing.

The total cost of the 2,100 units in ending inventory using absorption costing is $

.

Calculate the total cost of the 2,100 units in ending inventory using variable costing.

The total cost of the 2,100 units in ending inventory using variable costing is $

.

Answer 1

Answer to Question 1: