29 Jun Question During the 1st month of ope
Question
During the 1st month of operation the device was selling on the market very well. Ms. Scott was looking forward to a healthy profit. Yet she was angry to see a loss for the month on the income statement. The statement was prepare by her account service
Scott product inc. – sale 40,000 unit 200,000
Variable exp
Variable cost of goods sold 80,000
Variable selling exp 30,000 110,000
Contribution margin 90,000
Fixed manufacturing overhead 75,000
Fixed selling exp 20,000 95,000
Net operating loss 5000
Ms. Scott is angry because of the loss for the month. She planned to use her statement to show investor to purchase stock in her company. A cpa friend of Ms. Scott said she should use the absorption cost rather than the variable cost. The cpa inform Ms. Scott if she use the absorption cost rather than variable then she would have made a profit for the month. Based on the data of the company operation Scott product inc. unit produced 60,000, units sold =40,000 variable cost per unit direct material=1.00; direct labor= 80 cents; variable overhead = 20 cents; variable selling exp= 75 cents
Questions I need to complete the following-
1. compare the unit product cost under absorpotion costing
2. redo the company income statement for the month using absorotion costing.
3. Was ms scott cpa friend was telling her the truth that she would make a profit. I need to explain this question.
During the 2nd month of operation the company again produce 50,000 unit but sold 60,000 units. Assume no change in total fix cost
i need to prepare a contribution format income statement for the month using variable costing
i need to prepare an income statement for the month using absorption costing
i need to reconcile the variable costing and cost operation income.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.