Analyze what is the unit product cost for the month

Reference no: EM131955868

Problem

Pacher Company, which has only one product, has provided the following data concerning its most recent month of operations.

Selling Price ................................. $155

Units in beginning inventory ..............100

Units Produced .............................4,500

Units Sold ....................................4,300

Units in Ending Inventory .................300

Variables costs per unit

Direct material .................................$28

Direct labor .....................................$49

Variable manufacturing overhead ........$7

Fixed selling and administrative ..........$81700

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

Required

a. What is the unit product cost for the month under variable costing?

b. Prepare an income statement for the month using the variable costing method.

c. Without preparing an income statement, determine the absorption costing net operating income for the month.

Reference no: EM131955868

Questions Cloud

What is the uncertainty in the energy of that state : An excited state in a certain atom has an average lifetime of 5.2 × 10-10 s. What is the uncertainty in the energy of that state?

Create a histogram for the annual percentage return data : Using excel, create a histogram for the annual percentage return data. Using excel, calculate the variance, standard deviation, and geometric average return.

Describe the costs of goods transferred out : Describe the costs of goods transferred out and the ending inventory using the weighted-average method.

Decide between two different investment opportunities : He has $10,000 in the bank now and is trying to decide between two different investment opportunities,

Analyze what is the unit product cost for the month : Analyze What is the unit product cost for the month under variable costing? Prepare an income statement for the month using the variable costing method.

How much money would you need to invest : You have your choice of two investment accounts. Investment A is a 12-year annuity that features end-of-month $1,300 payments and has an interest rate of 7.1.

How much would you be willing to pay to invest in project : How much would you be willing to pay to invest in this project (i.e, what is the PV of the cash flows)?

Examine the financial statements of the companies : Examine the financial statements of the two companies in your pair. Most ratios are computed by the websites. If you need any ratio that is not available.

Prepare a schedule showing the current portion : Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Braddock's balance sheet.

User Account

All Pages