Reference no: EM132802999
XYZ Corporation manufactures only one type of product and has provided the following information:
Selling Price per unit $140
Units in Beginning Inventory 100
Units produced 3200
Units sold 3000
Units in Ending Inventory ?
Fixed costs per month:
Fixed manufacturing overhead $88,600
Fixed selling and administrative $32,000
Variable Costs per unit:
Direct Material $41
Direct Labour $22.50
Manufacturing Overhead (variable ) $7
Selling & Admin (variable) $10
Required:
Problem 1: Calculate the unit product cost for the month under variable costing.
Problem 2: Calculate the unit product cost for the month under absorption costing.
Problem 3: Prepare the Income Statement for the month, using the variable costing method.