Question
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price190Units in beginning inventory0Units produced3,280Units
Mahugh Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price190Units in beginning inventory0Units produced3,280Units sold3,170Units in ending inventory110Variable costs per unit:Direct materials49Direct labor53Variable manufacturing overhead15Variable selling and administrative18Fixed costs:Fixed manufacturing overhead$101,680Fixed selling and administrative$12,680
Required:
a.What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the month using variable costing.
d. Prepare an income statement for the month using absorption costing.
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