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ABC Company which has only one product, has provided the following data concerning its most recent month of operations: 200 1800 1200 Selling price ($)
ABC Company which has only one product, has provided the following data concerning its most recent month of operations: 200 1800 1200 Selling price ($) Units produced each month Units sold Variable costs per unit (S): Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per month ($): Fixed manufacturing overhead Fixed selling and administrative 50 30 10 2 7200 3600 The company produces the same number of units every month, although sales in units vary from month to month. The company's variable cost per unit and total fixed costs have been constant from month to month. Required: a. What is the unit product cost for the month under variable costing method? b. What is the unit product cost for the month under total cost method? c. Prepare a contribution format income statement for the month using variable costing method. d. Prepare the income statement for the month using the total cost method. e. Compare between the net operating income under variable costing method and total cost method for the month using production costs in A and B
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