The College Of New Jersey Operations And Supply Chain Management Assignment Help - Skinny Dippers

Question - Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in five-gallon containers,
which have the following price and variable costs.
Sales price ................................................................................. $15
Direct material .................................................................................... 5
Direct labor ............................................................... 2
Variable overhead ............................................................ 3
Budgeted fixed overhead in 20x1, the company s first year of operations, was $300,000. Planned and
actual production was 150,000 five-gallon containers, of which 125,000 were sold. Skinny Dippers,
Inc. incurred the following sellin ...Read More g and administrative expenses.
Fixed .................................................................... $50,000 for the year
Variable ...................................................... $1 per container sold
Required
1. Compute the product cost per container of frozen yogurt under ( a ) variable costing and ( b )
absorption costing.
2. Prepare income statements for 20x1 using ( a ) absorption costing and ( b ) variable costing.
3. Reconcile the income reported under the two methods by listing the two key places where the
income statements differ.
4. Reconcile the income reported under the two methods using the shortcut method.
1. ...Read Less

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