Refer to your answers to Short Exercise S21A-23. Product X sells for $175 per unit.
Assume no beginning inventories. Calculate the gross profit using absorption costing when Adamson:
a. Produces and sells 2,000 units.
b. Produces 2,500 units and sells 2,000 units
c. Produces 5,000 units and sells 2,000 units.
Refer to Short Exercise S21A-23,
Adamson, Inc. has the following cost data for Product X:
Direct materials .................................. $ 41 per unit
Direct labor .......................................... 57 per unit
Variable manufacturing overhead ................. 7 per unit
Fixed manufacturing overhead ............. 20,000 per year
Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units?