Zookal Homework Help

Homework Help

  1. Business
  2. Accounting
  3. if you could show your work on how you came...

Question: if you could show your work on how you came...

Question details

if you could show your work on how you came to your calculations id greatly appreciate it. thanks in advance*P6-8A Dilithium Batteries is a division of Enterprise Corporation. The division manufac- tures and sells a long-life battery used in a wide variety of applications. During the coming year, it expects to sell 60,000 units for $30 per unit. Nyota Uthura is the division manager. She is considering producing either 60,000 or 90,000 units during the period. Other infor- mation is presented in the schedule. when sales level and production level change. Discuss relative usefulnessDivision Information for 2017 of ahsorption costing versus Beginning inventory variable costing. Expected sales in units Selling price per unit Variable manufacturing costs per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit: 60,000 S30 $12 $540,000 LO 5), AN Based on 60,000 units Based on 90,000 units $9 per unit ($540,00060,000) $6 per unit ($540,000 ÷ 90,000) Manufacturing costs per unit: Based on 60,000 units Based on 90,000 units $21 per unit ($12 variable +$9 fixed) $18 per unit ($12 variable $6 fixed) Variable selling and administrative expenses Fixed selling and administrative expenses (total) 50,000 Instructions (a) 90,000 units: NI $550,000 (a) Prepare an absorption costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are b) 90,000 units: NI $370,000 (b) Prepare a variable costing income statement, with one column showing the results if 60,000 units are produced and one column showing the results if 90,000 units are (c) Reconcile the difference in net incomes under the two approaches and explain what (d)_Discuss the relative usefulness of the variable costing income statements produced. accounts for this difference. versus the absorption costing income statements for decision making and for evaluat ing the managers performance

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution