that c be raced to t cthe r divi forpnat and is segmented by sefment, show each item on the segmented tement fer Mi y that uses the d addition, for the as a whole and for each di income stafements as a percent of sales. L EXERCISE69 Variable Costing Unit Product Cost and Income Statement; Break-Even [LOI,LO2] CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year\'s operations follow: TAKE ng 50,000 Units in beginning inventory Units produced Units sold 10,000 9,000 1,000 Units in ending inventory Variable costs per unit S 60 Direct materials Direct labor.. Variable manufacturing overhead Variable selling and administrative 10 20 $120 Total variable cost per unit Fixed costs Fixed manufacturing overhead Fixed selling and administrative. $300,000 450,000 $750,000 Total fixed costs. Required: 1. Assume that the company 2. Assume that the company uses variable costing. Prepare a contribution format income statement for uses variable costing. Compu te the unit product cost for one computer desk. the year 3. What is the company\'s break-even point in terms of units sold? EXERCISE 6-10 Absorption Costing Unit Product Cost and Income Statement [LOI, LO2] Refer to the data in Exercise 6-9 for CompuDesk. Assume in this exercise that the company uses absorp- tion costing. TAKE Required: 1. Compute the unit product cost for one computer desk. 2. Prepare an income statement. ented Income Statement [L04] Bovine Compainy a w f DVDy, has iencingMosses for some tie, as hown below thly ormat i $1,508,000 es 912, 945 Fixed exbenses operating loss Solution Under Variable costing method, only variable costs are considered fo Unit Cost calculcation. Fixed Manufacturing overheads are not considered. Selling and Admin Costs whether variable or fixed are not relevant. Now, Calculating Income statement : Now Beak Even Sales : Now, Income statement using Absorption Costing data .

1. that c be raced to t cthe r divi forpnat and is segmented by sefment, show each item on the
segmented tement fer Mi y that uses the d addition, for the as a whole and for each di income
stafements as a percent of sales. L EXERCISE69 Variable Costing Unit Product Cost and
Income Statement; Break-Even [LOI,LO2] CompuDesk, Inc., makes an oak desk specially
designed for personal computers. The desk sells for $200. Data for last year's operations follow:
TAKE ng 50,000 Units in beginning inventory Units produced Units sold 10,000 9,000 1,000
Units in ending inventory Variable costs per unit S 60 Direct materials Direct labor.. Variable
manufacturing overhead Variable selling and administrative 10 20 $120 Total variable cost per
unit Fixed costs Fixed manufacturing overhead Fixed selling and administrative. $300,000
450,000 $750,000 Total fixed costs. Required: 1. Assume that the company 2. Assume that the
company uses variable costing. Prepare a contribution format income statement for uses variable
costing. Compu te the unit product cost for one computer desk. the year 3. What is the
company's break-even point in terms of units sold? EXERCISE 6-10 Absorption Costing Unit
Product Cost and Income Statement [LOI, LO2] Refer to the data in Exercise 6-9 for
CompuDesk. Assume in this exercise that the company uses absorp- tion costing. TAKE
Required: 1. Compute the unit product cost for one computer desk. 2. Prepare an income
statement. ented Income Statement [L04] Bovine Compainy a w f DVDy, has iencingMosses for
some tie, as hown below thly ormat i $1,508,000 es 912, 945 Fixed exbenses operating loss
Solution
Under Variable costing method, only variable costs are considered fo Unit Cost calculcation.
Fixed Manufacturing overheads are not considered.
Selling and Admin Costs whether variable or fixed are not relevant.
Now, Calculating Income statement :
Now Beak Even Sales :
Now, Income statement using Absorption Costing data
Assuming Variable Costing
Method

2. Unit product cost
Direct Material 60
Direct Labour 30
Variable Manufacturing overhead 10
Unit Cost 100