COURSE: COSTS AND BUDGET

Below is some information, which you should work with to determine what you are being asked to do:

Unit cost of product:

- Direct Raw Material $1,000

- Direct Labor $1.500

- Variable manufacturing overhead costs $500

- Fixed manufacturing overhead costs $2,500

Total Manufacturing Costs per unit $5,500

- Production 6,000 units

- Sales 5,000 units.

- Unit selling price $8,000.

- Variable Selling and Administrative Expenses $1,700,000.

- Fixed Selling and Administrative Expenses $4,800,000.

a) Determine the unit production costs ($/unit).

b) Determine the income statement

c) Determine the direct costing and absorption system.

Please ASAP