Acct505 : Week 3 Homework assignment : A++ Guarantee

Sansign Corporation produces the Universe Smartphone 3. These phones sell for $600 each. Selected data for the company’s operations for the year ended December 31, 2015 follows:

Required:

1.  Calculate the unit product cost for one phone using:

a.  Absorption Costing

b.  Variable Costing

2.  Prepare a traditional format income statement using absorption costing.

3.  Prepare a contribution format income statement using variable costing.