Question - Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:
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Selling price
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$150
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|
|
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Units in beginning inventory
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0
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Units produced
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3,100
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Units sold
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2,700
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Units in ending inventory
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400
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|
|
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Variable cost per unit:
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|
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Direct materials
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$46
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Direct labor
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$50
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Variable manufacturing overhead
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$7
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Variable selling and administrative
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$11
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Fixed costs:
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|
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Fixed manufacturing overhead
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$86,800
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Fixed selling and administrative
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$8,100
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Required:
What is the unit product cost for the month under variable costing?
What is the unit product cost for the month under absorption costing?
Prepare a contribution format income statement for the month using variable costing.
Prepare an income statement for the month using absorption costing.