What is the unit product cost for the month under variable

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Qasimi Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price

$105


Units in beginning inventory

0

Units produced

20,000

Units sold

17,000

Units in ending inventory

3,000


Variable costs per unit:


Direct materials

$32

Direct labor

$27

Variable manufacturing overhead

$8

Variable selling and administrative

$5


Fixed Costs


Fixed manufacturing overhead

$220,000

Fixed selling and administrative

$170,000

Required:

  1. What is the unit product cost for the month under variable costing?
  2. What is the unit product cost for the month under absorption costing?
  3. prepare an income statement for the month using the contribution format and the variable costing method.
  4. prepare an income statement for the month using the traditional format and the absorption costing method.

Reference no: EM13483491

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