Roller Paint Co

question 83

Essay

Roller Paint Co.reported the following data for the month of September.There were no beginning inventories and all units were completed no work in process.
In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.
a Prepare a variable costing income statement.
b Prepare an absorption costing income statement.
c Briefly explain why there is a difference in income from operations between the two methods.
a.Relevant range
b.Break-even point
c.Contribution margin
d.Fixed costs
e.Variable costs

Understand the cost flow in a manufacturing company, including the concepts of direct materials, direct labor, and manufacturing overhead.

Calculate the total manufacturing costs incurred during a period.

Calculate the cost of goods manufactured based on given inventory and cost data.

Interpret the role of beginning and ending inventories in the calculation of cost of goods sold and cost of goods manufactured.

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