Determining variable and absorption costs

Assignment Help Accounting Basics

Reference no: EM1363162

Sharpens Incorporated produces knife sets for use in commercial kitchens. They sell for $400.00 each.

Selected data for the company's operations last year follow below.

Units in beginning inventory 0
Units produced 3000
Units sold 2500
Units in ending inventory 500

Variable cost per unit
Direct materials $120.00
Direct labor 80
Variable manufacturing overhead 40
Variable selling and administrative 20

Fixed costs
Fixed manufacturing overhead $ 300,000
Fixed selling and administrative $ 200,000

a. Assume that the company uses variable costing, compute the unit cost for one knife set? (Show all work)

b. Assuming that the company uses absorption costing, compute the unit cost for one knife set. (Please show all work so I am able to learn this stuff)

Reference no: EM1363162

Questions Cloud

Current environment of health care : How does the role of the nursing case manager impact the current environment of health care related to health promotion? Provide examples to support your sentences and draw from your experiences.

Explain what do you think of the energy gulch idea : Explain What do you think of the Energy Gulch idea and Why and Select one mutual fund you find attractive and give the reasons why you chose it.

What is the required magnitude of the minimum acceleration : what is the needed magnitude of the minimum acceleration.

Video memory is needed to store picture as true color image : how much memory is required to store the picture? How much video memory is required to store the picture as a ''true color'' image, at 3 bytes per pixel?

Determining variable and absorption costs : Assume that the company uses variable costing, compute the unit cost for one knife set? Assuming that the company uses absorption costing, compute the unit cost for one knife set.

Show ecologically sustainable organization : Describe an ecologically sustainable organization and the stages through which firms progress as they become more sustainable

Competencies in health promotion and disease prevention : Assessing the behavioral, social and cultural determinants of health and their impact on the health status of populations.

Elucidate how that influences the marginal benefits : Elucidate how that influences the marginal benefits and marginal costs associated with the decision to purchase a house.

Technological innovations as a result of the internet : What new technological innovations have emerged on the internet as a way to influence our lives

User Account

All Pages