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

question 67

Essay

Oakes Company,which has only one product,has provided the following data concerning its most recent month of operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 108 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 1,100 \\\hline \text { Units sold } & 900 \\\hline \text { Units in ending inventory } & 200 \\\hline \text { Variable costs per unit: } &\\\hline \text { Direct materials } & \$ 28 \\\hline \text { Direct labour } & \$ 30 \\\hline \text { Variable manufacturing overhead } & \$ 7 \\\hline \text { Variable selling and administrative } & \$ 11 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead }& \$ 14,300 \\\hline\text { Fixed selling and administrative }& \$ 1,800\\\hline\end{array}$

Required:
a)Prepare an income statement for the month using the contribution format and the variable costing method.
b)Prepare an income statement for the month using the absorption costing method.

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Definitions:

Retirement

The period in life when one chooses to permanently leave the workforce behind, often due to age or health.

Family Decision Making

The process through which family members collectively make choices about consumption-related matters, considering the preferences and needs of all involved.

Joint

A joint typically refers to a point where two bones are connected in the body, but in business context, it could imply a venture undertaken by two or more parties who share ownership and profits.

Spouse-dominant

A decision-making dynamic in households where one spouse predominantly makes the purchasing decisions.