Paint More LLC has organized a new division to manufacture and sell specialty paint. The division’s monthly costs are shown below:
- Variable manufacturing overhead $1
- Fixed manufacturing overhead costs (total) $100,000
- Selling and administrative costs:
Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Submit an Excel document which each tab labeled by item number in good form that demonstrates the following:
1.Compute the unit product cost under:
2.Absorption costing
3.Variable costing
4.Prepare an absorption costing income statement for September
5.Prepare a contribution format income statement for September using variable costing