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2 Cost data for said product are given below: Variable costs per unit:
hw 5.2
Cost data for said product are given below:
Variable costs per unit: Direct materials$5
Direct labor 9 Variable manufacturing overhead 2 Variable selling and administrative 2 Total variable cost per unit$18 Fixed costs per month: Fixed manufacturing overhead$120,000 Fixed selling and administrative 163,000 Total fixed cost per month$283,000
The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, are as follows:
Units
Produced Units
SoldJuly 30,000 26,000 August 30,000 34,000
The company's Accounting Department has prepared absorption costing income statements for July and August as presented below:
July AugustSales$1,326,000 $1,734,000 Cost of goods sold 520,000 680,000 Gross margin$806,000 $1,054,000 Selling and administrative expenses 215,000 231,000 Net operating income$591,000 $823,000
- determine the unit product cost under absorption costing and variable costing:
a. absorption costing unit product cost:
b. variable costing unit product cost:
2.prepare contribution format variable costing income statements for July and August:
