Question
Fancy Inc. manufactures and sells a single product. The company uses First-in-First-Out Inventory costing method. Data for its most recent month of operations follows: Selling
Fancy Inc. manufactures and sells a single product. The company uses First-in-First-Out Inventory costing method. Data for its most recent month of operations follows:
Selling price per unit. | $250 |
Units in the beginning finished goods inventory. | 800 |
Units produced (normal production) . | 5,200 |
Units sold | 5,500 |
Units in the ending finished goods inventory | 500 |
Variable costs per unit: |
|
Direct materials. | $50 |
Direct labor | $75 |
Variable manufacturing overhead. | $20 |
Variable selling and administrative | $10 |
Fixed cost per month: |
|
Fixed manufacturing overhead. | $156,000 |
Fixed selling and administrative. | $66,000 |
The company produces the same number of units every month, although the sales in units vary from month to month. The companys variable costs per unit and total fixed costs have been constant from month to month.
Instruction: DO NOT put a "$" dollar sign and a "comma sign on your answer. Compute the following amount for the most recent month Answer 1. Product cost per unit under absorption costing method ? 2. Product cost per unit under variable costing method? 3. Fixed manufacturing overhead per unit? 4. Cost of the ending finished goods inventory under absorption costing method? 5. Cost of the beginning finished goods inventory under variable costing method? 6. Cost of goods sold under absorption costing method? 7. Net operating income under absorption costing method? 8. Net operating income under variable costing method
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