Brock Company produces and sells an industrial product. The company has just opened a new plant to manufacture the product, and the following cost and revenue data have been provided for the first month of the plant%u2019s operation.
|
| Beginning inventory |
|
0 |
| Units produced |
|
49,000 |
| Units sold |
|
44,000 |
| Selling price per unit |
$ |
80 |
| Selling and administrative expenses: |
|
|
| Variable per unit |
$ |
2 |
| Fixed (total) |
$ |
564,000 |
| Manufacturing costs |
|
|
| Direct materials cost per unit |
$ |
14 |
| Direct labor cost per unit |
$ |
8 |
| Variable manufacturing overhead cost per unit |
$ |
2 |
| Fixed manufacturing overhead cost (total) |
$ |
784,000 |
|
| 1. |
Assume that the company uses absorption costing. |
| a. |
Determine the unit product cost. |
| b. |
Prepare an income statement for the month.
|