Wave Specialists Co. manufactures surf boards, which sell for $565 each. The variable costs of...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Wave Specialists Co. manufactures surf boards, which sell for $565 each. The variable costs of production (per unit) are as follows: Direct Material Direct Labour Variable Manufacturing Overhead $200 110 80 Budgeted fixed overhead in 2019 was $400,000 and budgeted production was 50,000 surf boards. Wave Specialists achieved their planned production for the year. Sales for the year were 47,000 units; variable selling and administrative costs were $5 per unit sold; total selling and administrative costs were $310,000 Required: 1. Calculate the product cost per surfboard under: (3 marks) a. absorption costing, and b. variable costing 2. Prepare operating income statements for the year using: (11 marks) a. absorption costing, and b. variable costing 3. Prepare a reconciliation of the differences between the two methods and explain these differences. (6 marks)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.