A company makes 200 units of A and 500 units of B. All the units of B
Question:
A company makes 200 units of A and 500 units of B. All the units of B are sold and one-half of the units of A are sold. There was no beginning inventory, but 100 units of A are in ending inventory. Product A sells for \($5\) per unit and product B sells for \($10\) per unit. The variable cost of making product A is \($2\) per unit and the variable cost of making product B is \($6\) per unit. There are no fixed costs other than \($900\) of costs that are allocated to the two products.
Calculate the profit with \($600\) allocated to product A and \($300\) allocated to product B.
Calculate the profit with \($300\) allocated to product A and \($600\) allocated to product B.
Step by Step Answer:
Management Accounting In A Dynamic Environment
ISBN: 9780415839020
1st Edition
Authors: Cheryl S McWatters, Jerold L Zimmerman