- Please Show Your Excel Formulas 1 (85.82 KiB) Viewed 30 times
Please show your excel formulas
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answerhappygod
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Please show your excel formulas
Please show your excel formulas
Nudie Company started operation in 2020. The company manufactures mineral salt for swimming pools that it sells online by the box, at $50 per box. Nudie uses an actual costing system, which means that the actual costs of direct materials, direct labour, and manufacturing overhead are entered into the work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Nudie's first two years of operation is as follows: 2020 2,500 3,000 2021 2,500 2,000 Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: Variable Fixed $21,000 42,000 $14,000 42,000 25,000 20,000 25,000 20,000 Nudie Company had no beginning or ending work-in-process inventories for either year. Required: Prepare operating income statements for both years based on absorption costing. A. B. Prepare operating income statements for both years based on variable costing. C. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements A and B.
Nudie Company started operation in 2020. The company manufactures mineral salt for swimming pools that it sells online by the box, at $50 per box. Nudie uses an actual costing system, which means that the actual costs of direct materials, direct labour, and manufacturing overhead are entered into the work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Nudie's first two years of operation is as follows: 2020 2,500 3,000 2021 2,500 2,000 Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: Variable Fixed $21,000 42,000 $14,000 42,000 25,000 20,000 25,000 20,000 Nudie Company had no beginning or ending work-in-process inventories for either year. Required: Prepare operating income statements for both years based on absorption costing. A. B. Prepare operating income statements for both years based on variable costing. C. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements A and B.
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