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Starfax, Inc. manufactures a small part that is widely used in various electronic products such as home computers. Data regarding inventory, production and sales in
Starfax, Inc. manufactures a small part that is widely used in various electronic products such as home computers. Data regarding inventory, production and sales in units follows: April May June Beginning inventory in units 2,400 4,500 10,100 Production in units 18,000 22,500 12.000 Sales in units 15,900 16,900 20,600 Ending inventory in units 4,500 10,100 1,500 Variable manufacturing costs per unit were $8.00, variable selling expenses per unit were $1.50, and fixed manufacturing overhead was $90,000 per month and has been for the past six months. Starfax produced 15,000 units in March. Required: 1. Calculate the fixed overhead per unit for March, April, May and June (1 mark) Use two decimals when recording amounts per unit, i.e. 1.75. March April May June $ Fixed overhead per unit 2. Calculate the amount of fixed overhead contained in beginning inventory for April, May and June (3 marks) Use two decimals when recording amounts per unit, i.e 1.75. April May June Fixed overhead in beginning inventory 3. Calculate the amount of fixed overhead contained in ending inventory for April, May and June. (3 marks) Use two recording amounts per unit, i.e. 1.75. April May June AA Fixed overhead in ending inventory May 4. Calculate the absorption costing operating income or loss for April, May and June. (3 marks) Enter negative num sign in front of them, i.e. -10000. April June Variable costing operating income (loss) -$3,600 $1,400 $19,900 Add: Deduct Absorption costing operating income (loss) Prev 17020 N
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