During its first year of operations (beginning inventory was $0) in 2018, Lafayette Manufacturing, reported...
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During its first year of operations (beginning inventory was $0) in 2018, Lafayette Manufacturing, reported the following costs:
Direct materials................... $10 per unit
Direct labor......................... $7 per unit
Variable factory overhead.... $3 per unit
Fixed factory overhead........ $7000
Units produced this year....... 3,500 units
Units sold this year 3,000 units
Calculate the following items and write your answers in the spaces provided. a. Which expense listed above is treated differently under the two methods? How is this expense treated under variable costing? Write either Period Cost OR Product Cost. b. Unit cost - absoprtion costing: $ c. Unit cost - variable costing: $ d. Cost of Goods Sold absorption costing: $ e. Cost of Goods Sold - variable costing: $ f. Units in Ending Inventory g. Ending Inventory - absorption costing: $ h. Ending Inventory - variable costing: $ i. Given this information for Lafayette Manufacturing, Inc., which of the following income statements would report a higher amount for income from operations? Write either Absorption OR Variable:
During its first year of operations (beginning inventory was $0) in 2018, Lafayette Manufacturing, reported the following costs:
Direct materials................... $10 per unit
Direct labor......................... $7 per unit
Variable factory overhead.... $3 per unit
Fixed factory overhead........ $7000
Units produced this year....... 3,500 units
Units sold this year 3,000 units
Calculate the following items and write your answers in the spaces provided.
a. Which expense listed above is treated differently under the two methods?
How is this expense treated under variable costing? Write either Period Cost OR Product Cost.
b. Unit cost - absoprtion costing: $
c. Unit cost - variable costing: $
d. Cost of Goods Sold absorption costing: $
e. Cost of Goods Sold - variable costing: $
f. Units in Ending Inventory
g. Ending Inventory - absorption costing: $
h. Ending Inventory - variable costing: $
i. Given this information for Lafayette Manufacturing, Inc., which of the following income statements would report a higher amount for income from operations? Write either Absorption OR Variable:
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