acct 322 managerial

Need help with my Accounting question – I’m studying for my class.

Assignment Question(s):

Q1. Give a numerical example for Variable Costing Contribution Format Income Statement that is used for the internal decision-making and compare with the traditional income statement prepared by absorption costing that is used for the external reporting. Prepare the two income statements assuming the following (2.5 marks)

  • There is no inventory.
  • There is beginning inventory.
  • There is end of period inventory
  • Explain and comment on the reasons for differences in the results

Answer:

Q2. Define the master budget and use your own figures to prepare the following quarter budgets:

  • Sales budget
  • Production budget with ending inventory.
  • Raw material budget with ending inventory.
  • Direct labor budget
  • Manufacturing overhead budget.
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