chapter 7 prb - 7-13) 1) a. Direct materials Direct labor...

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Unformatted text preview: 7-13) 1) a. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Absorption costing unit product cost $3.50 $12 $1 $11 $27.21 b. Tami's Creations Inc. Income Statement - Absorption costing Sales $1,120,000 Cost of goods sold $762,000 Gross margin $358,000 Selling and admin. Expenses $662,000 Net operating income $100,000 Reconciliation: Absorption costing net operating income: Fixed overhead cost deferred Variable costing net income: c. ...
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