Reference no: EM132548019
Scotty Industries Limited is a manufacturer of a single product. The company has provided the following data concerning its most recent month of operations:
Selling price $108
Units in beginning in inventory NIL
Units produced 1,100
Units sold 900
Units in ending inventory 200
Variable cost per unit:
Direct materials $28
Direct labour $30
Variable manufacturing overhead $7
Variable selling & administrative $11
Fixed costs:
Fixed manufacturing overhead $14,300
Fixed selling and administrative $1,800
Question a) Compute the unit product cost under variable/marginal costing.
Question b) Prepare an income statement for the month using the variable/marginal costing method.
Question c) Compute the unit product cost under absorption costing
Question d) Prepare an income statement for the month using the absorption costing method.