Question
By producing 4,000 units and selling 3,600 units of its only product, Rina Corporation incurred the following costs: variable factory costs: $12; variable selling and
By producing 4,000 units and selling 3,600 units of its only product, Rina Corporation incurred the following costs: variable factory costs: $12; variable selling and administrative cost: $3; Fixed factory overhead: $36,000; fixed selling and administrative costs: $40,000. Assuming a beginning inventory of zero, how much is the ending inventory under absorption costing?
Jana Company., which has only one product, provided the following data for June:
Sales @ $74 per unit - $636,400
Variable Costs Per Unit | Fixed Costs |
Direct Materials - $12 | Factory Overhead - $176,000 |
Direct Labor - 32 | Selling and Administrative - 8,600 |
Factory Overhead - 2 | |
Selling and Administrative - 6 |
There are 200 Units of inventory remaining at the end of June.
a. How much are the unit product cost under variable and absorption costing approach?
b. How much is the contribution margin for the month under the variable costing approach?
c. How much is the gross margin for the month under the absorption costing approach?
d. How much is the period cost for the month under the variable costing approach?
e. How much is the period cost for the month under the absorption costing approach?
Gina Company sells a product for $5 per unit. The fixed expenses are $210,000 and the unit variable expenses are 60% of the selling price?
How much sales would be necessary in order for Gina Company to realize a profit of 10% of sales?
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