1.
Calculate the product cost per game produces under absorption costing and under variable costing.
2. a
Prepare income statement for October and November under absorption costing.
b.
Prepare income statement for October and November under variable costing.
3.
State whether the operating income is higher under absorption costing or variable costing in October and November and explains the pattern of differences in operating income based on absorption costing versus variable costing.
4.
Compute the balance in finished goods inventory on October 31 and November 30 under absorption costing and variable costing, compare the differences in inventory balances and the differences in operating income and explain the differences in inventory balances based on absorption costing versus variable costing.
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Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
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