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A certain company presents the following cost structure for the manufacture of its products by period: Period 1 Period 2 Period 3 Initial Inventory 0
| A certain company presents the following cost structure for the manufacture of its products by period: |
| Period 1 | Period 2 | Period 3 | |
| Initial Inventory | 0 | 2.000 | 2.000 |
| Production | 8.000 | 5.000 | 6.000 |
| Sales | 6.000 | 5.000 | 7.000 |
| Variable Cost | |||
| Manufacturing costs per unit produced | $ 1.600 | $ 1.600 | $ 1.600 |
| Operating costs per unit sold | $ 800 | $ 800 | $ 800 |
| Fixed Costs | |||
| Manufacturing costs | $ 2.000.000 | $ 2.000.000 | $ 2.000.000 |
| Operating costs | $ 850.000 | $ 850.000 | $ 850.000 |
| Sale Price | $ 9.000 | $ 9.000 | $ 9.000 |
| Based on the exercise explained, you should develop the following points: 1. Variable Costing Method 2. Costing Method by Absorption |
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Study Guide For Accounting Chapters 1-14
Authors: Helen Brubeck
8th Edition
0136064817, 978-0136064817
