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Question no 4 Qabar Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units
Question no 4 Qabar Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in Beginig Inventory Units Produced Units Sold $120 0 4700 4300 Variable Cost Per Unit Direct Material Direct Labor Variable Manufacturing Overhead Variable Selling and Adminstrative expense $46 $24 $7 $10 Total Fixed Cost Fixed Manufacturing Overhead Fixed Selling and Adminstrative expense $56,200 $25,200 Required: a. What is the unit product cost for the month under variable costing? b. Prepare a contribution format income statement for the month using variable costing. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.) (12 marks)
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