Hopkins, Inc., began operations on January 1. The company sells a single product for $100 per unit. During the year, 12,000 units were produced and 9,000 units were sold.

Below were costs data for the year:

Variable Costs:

Direct material per unit $24/unit

Direct labour per unit $30/unit

Manufacturing overhead per unit $6/unit

Selling & administrative expenses per unit $4/unit

Fixed Costs:

Total manufacturing overhead $192,000

Total selling & administrative expenses $ 40,000

Question 1

Calculate manufacturing cost per unit using absorption costing method. (2 marks)

Question 2

Calculate manufacturing cost per unit using variable costing method. (2 marks)

Question 3

Calculate the income and ending finished goods inventory using absorption costing method. (3 marks)