Refer to the information for Decker, Inc. Requirements 1. Using absorption costing, calculate the unit product cost.

Question:

Refer to the information for Decker, Inc.


Requirements

1. Using absorption costing, calculate the unit product cost.

2. Prepare an income statement using the traditional format.

Decker, Inc. has collected the following data for November (there are no beginning inventories):

Units produced and sold ..........450 units

Sales price ................$ 275 per unit

Direct materials.............. 52 per unit

Direct labor ...............64 per unit

Variable manufacturing overhead...... 18 per unit

Fixed manufacturing overhead .......7,875 per month

Variable selling and administrative costs... 25 per unit

Fixed selling and administrative costs ....4,950 per month


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

Question Posted: