Question
Glew Corporation has provided the following information: Cost Per Unit: Direct materials $ 6.00 Direct labor $ 3.35 Variable manufacturing overhead $ 1.75 Sales commissions
Glew Corporation has provided the following information:
Cost Per Unit: Direct materials $ 6.00 Direct labor $ 3.35 Variable manufacturing overhead $ 1.75 Sales commissions (cost per unit) $ 1.00 Variable administrative expense $ 0.40
Cost Per Period:
Fixed manufacturing overhead $ 8,800 Fixed selling and administrative expense $ 4,000
Assuming a production level of 5000 units, answer the following: What are the prime costs? What are the conversion costs? What are the product costs? What are the period costs? Assume Absorption Costing and a selling price of $75/unit. Prepare a traditional format income statement for the period.
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