Compute the product cost per meal produced

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Reference no: EM132710155

Marks Meals produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The ollowing data are from the company's first two months in business:

Requirements

Problem 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February.

Problem 2. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing.

Reference no: EM132710155

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