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What is the per-unit production cost

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Reference no: EM132521681

Acme, Inc. manufactures headlights for large trucks. Here are data for the current year:

Beginning inventory, units                    None

Units produced                                 4,000

Units sold                                        3,200

Variable manufacturing costs            $500,000 total

Fixed manufacturing overhead costs       $120,000 total

Question a. What is the per-unit production cost under variable costing? Absorption costing?

Question b. What is ending inventory under variable costing? Absorption costing?

Question c. What is COGS under variable costing? Absorption costing?

Question d. How much fixed manufacturing overhead is treated as a period cost under variable costing? Absorption costing?

Question e. What is the difference in operating income under variable costing versus absorption costing?

Reference no: EM132521681

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