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Author Question: Andra's Bakery produces frozen pizzas, which it sells for $10 each. The company uses the FIFO ... (Read 415 times)

penguins

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on: Jan 5, 2020
Andréa's Bakery produces frozen pizzas, which it sells for $10 each. The company uses the FIFO inventory costing method and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from Andréa's Bakery first two months in business:

JulyAugust
Sales1,5001,800
Production2,1001,500
Variable manufacturing expense per pizza$6$6
Sales commission expense per pizza$1.50$1.50
Total fixed manufacturing overhead$1,050$1,050
Total fixed marketing and administrative expenses$900$900

Required:
1. Compute the product cost per meal produced under absorption costing and under variable
costing. Do this first for July and then for August.
2. Prepare separate monthly income statements for July and for August, using (a) absorption
costing and (b) variable costing.
3. Is operating income higher under absorption costing or variable costing in July? In August?
Explain the pattern of differences in operating income based on absorption costing versus variable costing.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by penguins on Jan 5, 2020

mariahkathleeen

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Reply #1 on: Jan 5, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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penguins

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Reply 2 on: Jan 5, 2020
Thanks for the timely response, appreciate it

tandmlomax84

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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