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Unformatted text preview: They are paid an annual salary. Two workers worked directly with each machine. The plant operated for 50 weeks, 5 days per week, 8 hours per day. Maintenance was performed after production hours in the evening. The machines operated only when units are being produced (i.e. Fuel used only when units were produced.) RM were purchased as used. Required: (1) Prepare an income statement using 'throughput' costing. (Separate selling and administration costs from manufacturing costs.) (2) Prepare an income statement using 'variable' costing. (Separate selling and administration costs from manufacturing costs.) (3) Prepare an income statement using 'absorption' costing. (Separate s & a costs as well. Do not include any selling and administration costs in the calculation of a unit cost.) (4) Reconcile the three net incomes calculated in requirements (1) to (3) above....
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This note was uploaded on 10/23/2011 for the course ACCT 3334 taught by Professor Don during the Spring '11 term at Dalhousie.
- Spring '11