1. Sunshine Company manufactures and sells a single product. Cost data for the product are given below: Selling price Variable Costs per Unit: Direct Materials $65 Direct Labor 9 Variable Manufacturing Overhead Variable Selling and Administrative 5 3 Fixed Cost per Unit Fixed manufacturing overhead Fixed selling and administrative expense $315,000 $250,000 Production and sales data for January, the first month of operations is given below: Units Produced 18,000 Units Sold January 15,000 Required: a. Compute the unit product cost under: (i) Absorption costing (ii) Variable costing b. Prepare the absorption costing income statement for January. c. Prepare the variable costing income statement for January.
1. Sunshine Company manufactures and sells a single product. Cost data for the product are given below: Selling price Variable Costs per Unit: Direct Materials $65 Direct Labor 9 Variable Manufacturing Overhead Variable Selling and Administrative 5 3 Fixed Cost per Unit Fixed manufacturing overhead Fixed selling and administrative expense $315,000 $250,000 Production and sales data for January, the first month of operations is given below: Units Produced 18,000 Units Sold January 15,000 Required: a. Compute the unit product cost under: (i) Absorption costing (ii) Variable costing b. Prepare the absorption costing income statement for January. c. Prepare the variable costing income statement for January.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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