Bowzer Industries Began Operations on January 1, 2006

question 73

Essay

Bowzer Industries began operations on January 1, 2006. The company sells a single product for $10 per unit. During 2006, 60,000 units were produced and 50,000 units were sold. There was no work in process inventory at December 31, 2006.
Bowzer uses an actual cost system for product costing and actual costs for 1998 were as follows: a. What is the product cost per unit under:
(i) variable costing
(ii) absorption costing
b. What is the finished goods inventory cost at December 31, 2006 under:
(i) variable costing
(ii) absorption costing
c. Prepare income statements for 2006 under:
(i) variable costing
(ii) absorption costing
d. Reconcile the difference between variable costing income and absorption costing income.

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Definitions:

Self-discrepancy Theory

A theory suggesting that psychological distress and emotional discomfort arise from discrepancies between one's actual self, ideal self, and ought self.

Self-discrepancies

Refers to the differences between individuals' perceptions of their actual self and their ideal or ought selves, which can influence their emotional state and self-esteem.

Declarative Selves

Aspects of an individual's self-concept that are consciously acknowledged and can be verbally communicated to others.

Procedural Selves

Conceptual frameworks relating to the aspect of self that is concerned with the processes of self-regulation and goal achievement.