Variable Costing
Query description Homework Handout Downside 6-2 Variable Costing Boise Manufacturing Firm makes wood pallets which can be bought to trucking corporations. Following are stock, gross sales and manufacturing figures for June 2013: BEGINNING INVENTORY 1000 UNITS PRODUCED DURING JUNE 15,000 UNITS SOLD DURING JUNE 14,000 UNITS SALES AND COST INFORMATION SALES PRICE PER UNIT $5.00 VARIABLE MANUFACTURING COSTS $2.00 FIXED MANUFACTURING COSTS $1.00 SELLING, GENERAL & ADMIN COSTS/MONTH $20,000 Required: 1. Compute and revenue assertion utilizing the absorption methodology. 2. Compute an revenue assertion utilizing the variable methodology. three. Reconcile and clarify the variations. four. Which methodology complies with GAAP and why? 5. Why may administration convert the interior reporting to a variable assertion on the finish of the interval?