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.