Question
Summer Fun Inc., produces and sells many recreational products. The company has just opened a new plant to produce Kerosene Lanterns that will be marketed
Summer Fun Inc., produces and sells many recreational products. The company has just opened a new plant to produce Kerosene Lanterns that will be marketed throughout the United States. The following cost and revenue data relate to February, the first month of the plants operation:
Direct Material | $8 | Units Produced | 12,000 |
Direct Labor | $5 | Units Sold | 10,000 |
Variable MOH | $2 |
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Variable Selling & Admin | $3 |
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Fixed MOH | $60,000 |
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Fixed Selling & Admin | $80,000 |
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Determine the per unit cost under both variable costing and absorption costing and prepare the income statement for each costing method
Price per unit is $33
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