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Chapter 7 - Variable Costing A Tool for Management Chapter...

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Variable Costing: A Tool for Management Chapter Seven
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Accounting 2102 2 Overview Absorption Costing and Variable Costing Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling and Administrative Expenses Fixed Selling and Administrative Expenses let’s see if we can recall the definition of product  costs and period costs . . .  Chapters 2, 3, and 4 used absorption costing when defining costs Chapter 7 introduces the concept of variable costing (consistent with what we learned in Chapters 5 and 6)
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Accounting 2102 3 Data for Year 1 of Operations Loco for Cocoa, LLC produces chocolate syrup. The following information relates to its production in year 1: Units produced 25,000 Units sold 20,000 Units in beginning inventory 0 Unit sales price $30 DM, DL, Variable MOH per unit $10 Fixed MOH $150,000 Variable SG&A per unit $3 Fixed SG&A $100,000 Prepare income statements for Loco for Cocoa under variable and absorption costing.
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Accounting 2102 4
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