Decker Company sells a single product for $25. It had no beginning inventories. Operating data follow. Sales, 27,000 units $675,000 Normal capacity 30,000 units Production costs: Variable per unit $13 Fixed production $150,000 Selling and administrative expenses: Variable per unit sold $2 Fixed selling $20,000 Number of units produced 32,500 units Assume the actual costs were as budgeted. Requirements: a. Find contribution margin per unit. b. Compute the ending inventory under standard variable costing. c. Compute the income under standard variable costing.
Decker Company sells a single product for $25. It had no beginning inventories. Operating data follow.
Sales, 27,000 units $675,000
Normal capacity 30,000 units
Production costs:
Variable per unit $13
Fixed production $150,000
Selling and administrative expenses:
Variable per unit sold $2
Fixed selling $20,000
Number of units produced 32,500 units
Assume the actual costs were as budgeted.
Requirements:
a. Find contribution margin per unit.
b. Compute the ending inventory under
c. Compute the income under standard variable costing.
Assume standard absorption costing using normal capacity as the basis for computing the standard fixed cost per unit. Compute
d. Standard gross profit per unit.
e. Ending inventory.
f. Income
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