Question
Terrific Company manufactures and sells two products, A and B Data pertaining to these products are as follows: A B Contribution margin per unit P60
Terrific Company manufactures and sells two products, A and B Data pertaining to these products
are as follows:
A B
Contribution margin per unit P60 P80
Fixed factory overhead 10 20
Fixed selling and administrative
costs 15 25
Variable selling and
administrative cost per unit 10 15
Selling price per unit 110 150
Normal production and sales (in
units) 20,000 30,000
During the month, the company produced 20,000 units of A and 30,000 units of B and sold 15,000 units
of A and 80% of the B's production. There was no inventory of finished goods for both products at he
beginning of the month.
Required: Provide the following information
Absorption costing Variable costing
Product A Product B Product A Product B
Cost of Goods Sold
Cost of ending
inventory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started