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Deep Space Co. manufactures one product - spaceship exhaust pipes

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Deep Space Co. manufactures one product - spaceship exhaust pipes. It incurs direct materials costs of $1,500 per unit. The line workers are paid (in total) $100 per hour.;Deep Space pays its plant supervisors based in part on salary and in part on the number of units produced in a month. The information for the last seven months of supervisors? salaries is as follows;Month Total Pay Units Produced;Dec X1 $45,000 25,000;Jan X2 49,100 27,000;Feb X2 42,000 23,000;Mar X2 39,100 17,000;AprX2 48,000 26,000;May X2 44,000 24,000;June X2 40,000 19,000;For the month ended 6/30/X2, Deep Space sold 18,000 units at $2,700 per unit;Other information for the month ended June X2;Fixed Manufacturing Costs (other than Supervisor?s Salary) $357,900;Fixed Selling & Administration Costs $60,000;Variable Selling & Administration Costs $300 per unit;At 5/31/X2, there were zero units in Ending Inventory (Deep Space sold its entire inventory).;For the month ended 6/30/X2, there were 160,000 of direct labor hours incurred.;Deep Space employs an actual costing system;REQUIRED: Provide the following (and support ALL of your work)?;a) Deep Space?s variable costing Income Statement for the month ended 6/30/X2;b) Deep Space?s absorption costing Income Statement for the month ended 6/30/X2;c) Reconcile and explain the difference between Deep Space?s Net Operating Income using variable costing and absorption costing.;HINT: You must figure out what all variable and fixed costs are before you can really start;Attachment Preview;Accounting Homework Problem2.doc Download Attachment;Deep Space Co. manufactures one product - spaceship exhaust pipes. It incurs;direct materials costs of $1,500 per unit. The line workers are paid (in total) $100;per hour.;Deep Space pays its plant... Show more

 

Paper#25013 | Written in 18-Jul-2015

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