Q2 (15 MINUTES, 15 MARKS)

Tesco Company showed the following costs for last month.

Direct materials$40,000

Direct labour35,000

Overhead52,000

Selling expense17,000

Administrative expense12,000

Last month, Tesco produced and sold 20,000 units at a sales price per unit of $18. Assume no beginning or ending inventory balances for work in process and finished goods inventory.

Required:

Solve for the following amounts.

A.Total product cost for last month

B.Unit product cost for last month

C.Total period costs

D.Gross margin for last month

E.Operating income for last month