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Pharoah Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture

a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below.

The portable cooking unit sells for $$110\mathrm{.}00.$ Management is interested in the opening month's results and has asked for an income

statement.

$($a$)$

Your answer is partially correct.

Assume the company uses normal$-$absorption costing and uses the budgeted volume of $13,500$ units to allocate the fixed

overhead rate rather than the actual production volume of $10,000$ units. The company expenses production volume variance to

cost of goods sold in the accounting period in which it occurs. Do the following:

Calculate the manufacturing cost per unit. $($Round manufacturing cost to $2$ decimal places, eg$.15\mathrm{.}25.)$

Manufacturing cost $$5$ per unit

Prepare a normal$-$absorption$-$costing income statement for the first month of operation.

PharoahProducts

Income Statement$-$Normal$-$Absorption Costing

PLEASE EXPLAIN THIS TO ME Thank you