Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Variable costs per unit: Direct materials -$14, Direct labour -$20, Variable manufacturing overhead -$10, selling and administrative -$ 6 Fixed cost per month Fixed manufacturing

Variable costs per unit: Direct materials -$14, Direct labour -$20, Variable manufacturing overhead -$10, selling and administrative -$ 6

Fixed cost per month

Fixed manufacturing overhead -$315,00.00

Fixed selling and administrative overheads - $245,000.00

The product sells for $120 per unit. Production and sales data for July, August, and September, the first three months of operations, are shown below:

Units Produced Units Sold

July 18,000 14,500

August 16,000 15,700

September 20,000 21,600

Determine the unit product cost using i. Marginal costing [2 marks] ii. Absorption costing [3 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

11th Edition

0273712136, 9780273712138

More Books

Students also viewed these Accounting questions

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago