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

question 46

Essay

Mahugh Company,which has only one product,has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 122 \\\hline \text { Units in beginning inventory } & 0,300 \\\hline \text { Units produced } & 8,200 \\\hline \text { Units sold } & 100\\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 27 \\\hline \text { Direct labour } & \$ 46 \\\hline \text { Variable manufacturing overhead } & \$ 4 \\\hline \text { Variable selling and administrative } & \$ 7 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 199,200 \\\hline \text { Fixed selling and administrative } & \$ 106,600\\\hline\end{array}$

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 an income statement for the month using the contribution format and the variable costing method.
d)Prepare an income statement for the month using the absorption costing method.
e)Reconcile the variable costing and absorption costing operating incomes for the month.

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Definitions:

Alertness

The state of being watchful, fully awake, and ready to respond to stimuli or challenges that arise.

Brain Wave Patterns

The electrical activity in the brain, as detected by electroencephalography (EEG), which is associated with different states of consciousness.

Alpha Waves

Brainwave patterns associated with a state of wakeful relaxation and calm alertness.

Theta Waves

A type of brainwave pattern associated with sleep, deep relaxation, and certain stages of memory processing, typically in the frequency range of 4–8 Hz.