5. Strus Corp. manufactures video games that it sells for $40 each. The following data is available for the months of January and February. January February Sales 2,000 units 3,000 units Production 2,500 units 2,800 units Variable manufacturing cost per game* $ 15 $ 15 Sales commission per game $ 5 $ 5 Total fixed manufacturing overhead $ 9,000 $ 9,000 Total fixed marketing and administrative costs $ 8,000 $ 8,000 * Variable manufacturing cost per game includes $9 for direct materials. a) Determine the unit product cost for each month using the absorption and variable costing approaches. b) Prepare an income statement for February using the variable costing approach. c) Prepare an income statement for February using the absorption costing approach.
5. Strus Corp. manufactures video games that it sells for $40 each. The following data is available for the months of January and February.
January February
Sales 2,000 units 3,000 units
Production 2,500 units 2,800 units
Variable
Sales commission per game $ 5 $ 5
Total fixed manufacturing overhead $ 9,000 $ 9,000
Total fixed marketing and administrative costs $ 8,000 $ 8,000
* Variable manufacturing cost per game includes $9 for direct materials.
a) Determine the unit product cost for each month using the absorption and variable costing approaches.
b) Prepare an income statement for February using the variable costing approach.
c) Prepare an income statement for February using the absorption costing approach.
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