The Tijama Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on normal production of 50,000 units per year: Operating statistics for the month of August and September include: The selling price is $70 per unit. There were no inventories on August 1, and there is no work in process at September 30.
Prepare comparative income statements for each month under the following methods:
a.Absorption costing method
b.Direct costing method

Question

The Tijama Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on normal production of 50,000 units per year:  Operating statistics for the month of August and September include:  The selling price is $70 per unit. There were no inventories on August 1, and there is no work in process at September 30.
Prepare comparative income statements for each month under the following methods: 
a.Absorption costing method
b.Direct costing method

Quizplus · Accepted Answer

The Answer of The Tijama Manufacturing Company has determined the cost of manufacturing a unit of product to be as follows, based on normal production of 50,000 units per year:  Operating statistics for the month of August and September include:  The selling price is $70 per unit. There were no inventories on August 1, and there is no work in process at September 30.
Prepare comparative income statements for each month under the following methods: 
a.Absorption costing method
b.Direct costing method

The Tijama Manufacturing Company Has Determined the Cost of Manufacturing