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Problem - During May, Roy Company produced 10,000 units of Product X. Costs incurred were as follows:
Direct materials 10,000
Direct labour 20,000
Variable manufacturing overhead 5,000
Variable selling and general expenses 3,000
Fixed manufacturing overhead 9,000
Fixed selling and general expenses 4,000
Total 51,000
Required - Compute Product X's unit production cost under both marginal and absorption costing.
Construct a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
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