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:

Self-directed

Relating to individuals who are able to guide, manage, and assess their own learning and work without constant supervision.

Reasonable Freedom

A concept referring to the amount of autonomy and liberty considered fair or adequate in a given context, allowing individuals or groups to make choices within certain boundaries.

Take Initiatives

The action of identifying opportunities and proactively pursuing them without being prompted by others, showing leadership and self-drive.

Argyris

Refers to Chris Argyris, a pioneer in the field of organizational development, known for his work on the theory of organization behavior.