Reference no: EM132596037

Bolte Manufacturing operations for 2017are as follows:

$

Per unit:

Sales price 50

Direct material cost 18

Direct wages 4

Variable production overhead 3

Per month:

Fixed production overhead 99 000

Fixed selling expenses 14000

Fixed administration expenses 26000

Variable selling expenses is 10% of sales value.

Normal capacity was 11000 units per month.

                               January                  February

                                  Units                           Units

Sales                     10000                     12000

Production                12000                        10000

Using the two methods:

Question A. Compute the unit production cost

Question B. Determine the value of the closing inventory

Question C. Prepare the Marginal Income Statement and the Absorption Income Statement for March and April