Answered step by step
Verified Expert Solution
Question
1 Approved Answer
It is important to notice that although production and sales volumes in each period are different, over the full period, total production equals sales volume.
It is important to notice that although production and sales volumes in each period are different,
over the full period, total production equals sales volume. The total cost of sales is the same and
therefore the total profit is the same by either method of accounting. Differences in profit in any
one period are merely timing differences which cancel out over a longer period of time.
(a) Absorption costing. The absorption rate for fixed production overhead is $1,500/1,500 units $1
per unit. The fully absorbed cost per unit $5.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started