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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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