6. Zara Company, which has only one product, has provided the following data concerning its first...
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6. Zara Company, which has only one product, has provided the following data concerning its first month of operations: Selling price Units produced Units sold $100 6,000 5,500 Variable product costs per unit $50 Variable selling and administrative costs per unit $10 Fixed manufacturing costs $90,000 Fixed selling and administrative costs $55,000 Required: a. What is the value of ending inventory using the variable costing method? b. What is the value of ending inventory using the absorption costing method? c. What is the contribution margin per unit? d. Prepare a monthly variable costing income statement (assume no taxes). e. What is the gross profit margin per unit? f. Prepare a monthly absorption costing income statement (assume no taxes). 6. Zara Company, which has only one product, has provided the following data concerning its first month of operations: Selling price Units produced Units sold $100 6,000 5,500 Variable product costs per unit $50 Variable selling and administrative costs per unit $10 Fixed manufacturing costs $90,000 Fixed selling and administrative costs $55,000 Required: a. What is the value of ending inventory using the variable costing method? b. What is the value of ending inventory using the absorption costing method? c. What is the contribution margin per unit? d. Prepare a monthly variable costing income statement (assume no taxes). e. What is the gross profit margin per unit? f. Prepare a monthly absorption costing income statement (assume no taxes).
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Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
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