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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
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