Reference no: EM132734923

Marginal costing HJ Turner Corporation produces a single product. Data concerning the company's operations last year appear below:

Units in beginning inventory 0

Units produced 10,000

Units sold 9,000

Selling price per unit $60

Variable costs per unit:

Direct materials $15

Direct labor $5

Variable manufacturing overhead $2

Variable selling and administrative $4

Fixed costs in total:

Fixed manufacturing overhead $200,000

Fixed selling and administrative $70,000

Assume direct labor is a variable cost.

Required:

Problem a. Compute the unit product cost under both absorption and variable costing.

Problem b. Do income statement for the year using absorption costing.

Problem c. Do income statement for the year using variable costing.