Question
ABC Company, which has only one product, has provided the following data concerning its most recent month of operations: (14 marks) Selling price$110Units in beginning
ABC Company, which has only one product, has provided the following data concerning its most recent month of operations: (14 marks)
Selling price$110Units in beginning inventory0Units produced4,600Units sold4,200Units in ending inventory400Variable costs per unit:Direct materials$46Direct labour$28Variable manufacturing overhead$5Variable selling and administrative$10Fixed costs:Fixed manufacturing overhead$55,200Fixed selling and administrative$25,200
Required:
a) What is the unit product cost for the month under variable costing? (2 marks)
b) income statement for the month using the contribution format and the variable costing method. (you can use a collapsed cost of goods sold (i.e. one number) or an expanded cost of goods sold (i.e. using inventory). (8 marks)
c) Without preparing an income statement, determine the absorption costing operating income for the month. (Hint: Use the reconciliation method.) (4 marks)
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