Question
Qiu Company, a new business producing only one product, has provided the following data concerning its first month of operations: Selling price $210 Units produced
Qiu Company, a new business producing only one product, has provided the following data concerning its first month of operations: Selling price $210 Units produced 4,000 Units sold 3,800 Variable costs per unit: - Direct materials $40 - Direct labour $35 - Variable manufacturing overhead $5 - Variable selling and administrative $8 Fixed costs: - Fixed manufacturing overhead $136,000 - Fixed selling and administrative $8,000 Required:
(a) What is the unit product cost for the month under Variable Costing? (5 marks) (b) Prepare an Income Statement for this month using Variable Costing. (20 marks) (c) Without preparing an Income Statement based on Absorption Costing, determine the Absorption Costing net operating income for this month. (5 marks)
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