Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below: Required:
a.Compute the unit product cost under both absorption and variable costing.
b.Prepare an income statement for the year using absorption costing.
c.Prepare a contribution format income statement for the year using variable costing.
d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Question

Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below:  Required:
a.Compute the unit product cost under both absorption and variable costing.
b.Prepare an income statement for the year using absorption costing.
c.Prepare a contribution format income statement for the year using variable costing.
d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.

Quizplus · Accepted Answer

The Answer of Italia Espresso Machina Inc.produces a single product.Data concerning the company's operations last year appear below:  Required:
a.Compute the unit product cost under both absorption and variable costing.
b.Prepare an income statement for the year using absorption costing.
c.Prepare a contribution format income statement for the year using variable costing.
d.Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.