Question
The S&S Corporation produces and sells one product. The following data refer to the year just completed: Beginning Inventory 0 units Units produced........................... 15,000 Units
The S&S Corporation produces and sells one product. The following data refer to the year just completed:
Beginning Inventory 0 units
Units produced........................... 15,000
Units sold...................................... 8,500
Sales price per unit.................... $275
Variable selling and administrative expenses per unit $ 14
Fixed Selling and administrative expenses (Total) $110,000
Manufacturing Costs:
Direct materials cost per unit..................................................$ 100
Direct labor cost per unit..........................................................$ 85
Variable manufacturing overhead cost per unit..............$ 20
Fixed manufacturing overhead (Total).................................$150,000
Required: a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the year using variable costing.
d. Prepare an income statement for the year using absorption costing.
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