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Denton Company manufactures and sells a single product. Cost data for the product are given: The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes..

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Denton Company manufactures and sells a single product. Cost data for the product are given: The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.

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  • 1. Denton Company manufactures and sells a single product. Cost data for the product are given: The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.