(Solved by Humans)-Problem 5-15 Variable and Full Costing Income: Comprehensive Problem [LO 1, 2, 3] The following...

Paper Details

Problem 5-15 Variable and Full Costing Income: Comprehensive Problem [LO 1, 2, 3] The following information relates to Porter Manufacturing for fiscal 2011, the company’s first year of operation: Selling price per unit $ 150 Direct material per unit $ 75 Prepare Direct labor per unit $ 30 Variable manufacturing overhead per unit $ 5 Variable selling cost per dollar of sales $ 0.05 Annual fixed manufacturing overhead $2,750,000 Annual fixed selling expense $1,500,000 Annual fixed administrative expense $ 900,000 Units produced 250,000 Units sold 230,000 Required a. Prepare an income statement using full costing. b. Prepare an income statement using variable costing. c. Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing and reconcile it to the difference between income computed under variable and full costing. Problem 5-15 Variable and Full Costing Income: Comprehensive Problem [LO 1, 2, 3] The following information relates to Porter Manufacturing for fiscal 2011, the companys first year of operation: Selling price per unit $ 150 Direct material per unit $ 75 Prepare Direct labor per unit $ 30 Variable manufacturing overhead per unit $ 5 Variable selling cost per dollar of sales $ 0.05 Annual fixed manufacturing overhead $2,750,000 Annual fixed selling expense $1,500,000 Annual fixed administrative expense $ 900,000 Units produced 250,000 Units sold 230,000 Required a. Prepare an income statement using full costing. b. Prepare an income statement using variable costing. c. Calculate the amount of fixed manufacturing overhead that will be included in ending inventory under full costing and reconcile it to the difference between income computed under variable and full costing.