Asked by Sophia Colosimo on Apr 26, 2024
Verified
Waltzer Corporation has provided the following data for its two most recent years of operation: 
Required:
a.Assume the company uses absorption costing.Compute the unit product cost in each year.
b.Assume the company uses absorption costing.Prepare an income statement for each year.
c.Assume the company uses variable costing.Compute the unit product cost in each year.
d.Assume the company uses variable costing.Prepare an income statement for each year.
e.Prepare a report in good form reconciling the variable costing and absorption costing net incomes.
Absorption Costing
A financial tracking method that brings together all costs of production—direct materials, direct labor, and all overhead, both variable and fixed—inclusion in the price of a product.
Variable Costing
An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs.
Net Incomes
The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating profitability over a specific period.
- Learn and utilize principles of absorption costing.
- Attain understanding and make use of variable costing approaches.
- Generate and assess income statements employing both absorption and variable costing strategies.
Verified Answer
MA
Michael and Roni SteinmeyerMay 01, 2024
Final Answer :
a.Absorption costing unit product costs: 
b.Absorption costing income statements: 
c.Variable costing unit product costs: 
d.Variable costing income statements: 
e.Reconcile the variable costing and absorption costing net operating incomes: 
b.Absorption costing income statements: c.Variable costing unit product costs: d.Variable costing income statements: e.Reconcile the variable costing and absorption costing net operating incomes: 
Learning Objectives
- Learn and utilize principles of absorption costing.
- Attain understanding and make use of variable costing approaches.
- Generate and assess income statements employing both absorption and variable costing strategies.