Reference no: EM132715398
Question - XYZ Corporation manufactures only one type of product and has provided the following information:
Selling Price per unit $140
Units in Beginning Inventory 100
Units produced 3200
Units sold 3000
Units in Ending Inventory ?
Fixed costs per month:
Fixed manufacturing overhead $88,600
Fixed selling and administrative $32,000
Variable Costs per unit:
Direct Material $41
Direct Labour $22.50
Manufacturing Overhead (variable) $7
Selling & Admin (variable) $10
Required -
1. Calculate the unit product cost for the month under variable costing.
2. Calculate the unit product cost for the month under absorption costing.
3. Prepare the Income Statement for the month, using the variable costing method.