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    Tiny Tim's Bookcases variable full absorption costing

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    Problem 2: Tiny Tim's Bookcases- Variable Costing vs Full Costing

    The information for Tiny Tim's Bookcases for the first two years of its operations is as follows:

    Selling price per unit $600

    Variable production costs per unit produced $210

    Variable selling costs per unit per unit sold $12

    Fixed production costs $75,000

    Fixed selling and administrative expenses $46,000

    Units sold each year 1,000 units

    Annual production in units:
    2010 1,000 units

    2011 1,250 units

    Part a: Compute the unit product cost under full (absorption) costing for 2010.
    Part b: Compute the unit product cost under variable costing for 2010.

    Part c: Prepare a variable costing income statement for 2010. No statement heading is required.

    Part d: Prepare a full (absorption) costing income statement for 2010. No statement heading is required.
    Part e: Compute the unit product cost under full (absorption) costing for 2011.
    Part f: Compute the unit product cost under variable costing for 2011.

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    https://brainmass.com/business/accounting/tiny-tims-bookcases-variable-full-absorption-costing-407815

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    Your tutorial is in Excel. I showed the unit cost for both years. I also created a traditional (gross profit subtotal) for both methods and a contribution margin format for both methods. This helps to show ...

    Solution Summary

    Your tutorial is in Excel. I showed the unit cost for both years. I also created a traditional (gross profit subtotal) for both methods and a contribution margin format for both methods. This helps to show that you are just re-sorting the amounts and not changing the reported amounts. I created a second set of financial statements for 2011, even though you didn't ask, so you can see how they might be different when you don't sell all that you make.

    $2.19