Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the companyproduced 44,000 units and sold 36,000 units at a price of $140 per unit.Manufacturing costsDirect materials per unitDirect labor per unitVariable overhead per unitFixed overhead for the yearSelling and administrative costsVariable selling and administrative cost per unitFixed selling and administrative cost per year602424$ 528,000228$4$ 105,00011la. Assume the company uses absorption costing. Determine its product cost per unit.AbsorptioncostingPer unit product cost using: 1a. Assume the company uses absorption costing. Determine its product cost per unit.AbsorptioncostingPer unit product cost using:Total cost per unit

In order to obtain the product cost under absorption costing, first the per-unit costs are added…

Answered: . Assume the company uses absorption…

Business

Accounting

. Assume the company uses absorption costing. Determine its product cost per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company
produced 44,000 units and sold 36,000 units at a price of $140 per unit.
Manufacturing costs
Direct materials per unit
Direct labor per unit
Variable overhead per unit
Fixed overhead for the year
Selling and administrative costs
Variable selling and administrative cost per unit
Fixed selling and administrative cost per year
60
24
24
$ 528,000
22
8
$4
$ 105,000
11
la. Assume the company uses absorption costing. Determine its product cost per unit.
Absorption
costing
Per unit product cost using:

1a. Assume the company uses absorption costing. Determine its product cost per unit.
Absorption
costing
Per unit product cost using:
Total cost per unit

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