1. Company B, manufactures a unique device that is used byinternet users to boost...

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Accounting

1. Company B, manufactures a unique device that is used byinternet users to boost internet signals. The following datarelates to the first month of operation:

Beginning inventory: 0 units
Units produced: 40,000 units
Units sold: 35,000 units
Selling price: $120 per unit
Marketing and administrative expenses:

Variable marketing and administrative expenses per unit:$4
Fixed marketing and administrative expenses per month:$1,120,000
Manufacturing costs:

Direct materials cost per unit: $30
Direct labor cost per unit: $14
Variable manufacturing overhead cost per unit: $4
Fixed manufacturing overhead cost per month: $1,280,000
Management is anxious to see the success as well asprofitability of newly designed unique booster.

1. Calculate unit product cost and prepare income statementunder variable costing system and absorption costing system.
2. Prepare income statement under two costing system.
3. Prepare a schedule to reconcile the net operating incomeunder variable and absorption costing system.

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In: Accounting1. Company B, manufactures a unique device that is used byinternet users to boost internet...1. Company B, manufactures a unique device that is used byinternet users to boost internet signals. The following datarelates to the first month of operation:Beginning inventory: 0 unitsUnits produced: 40,000 unitsUnits sold: 35,000 unitsSelling price: $120 per unitMarketing and administrative expenses:Variable marketing and administrative expenses per unit:$4Fixed marketing and administrative expenses per month:$1,120,000Manufacturing costs:Direct materials cost per unit: $30Direct labor cost per unit: $14Variable manufacturing overhead cost per unit: $4Fixed manufacturing overhead cost per month: $1,280,000Management is anxious to see the success as well asprofitability of newly designed unique booster.1. Calculate unit product cost and prepare income statementunder variable costing system and absorption costing system.2. Prepare income statement under two costing system.3. Prepare a schedule to reconcile the net operating incomeunder variable and absorption costing system.