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.