6. The Dean Company produces and sells a single product--a microwa oven.The following data refer to the year just completed:Beginning inventoryUnits producedUnits soldSales price per unitSelling and administrative expenses:Variable per unitFixed (total)£020,00019,00035010225,000Manufacturing costs:Direct materials cost per unit....... 190Direct labor cost per unit40Variable overhead cost per unit25Fixed overhead (total).......250,000Assume that direct labor is a variable cost.Required:a. Compute the cost of a single unit of product under both the absorption costingand variable costing approaches.

Variable costing approach is the costing method that determines the total cost of product by only…

6. The Dean Company produces and sells a single product--a microwa The following data refer to the year just completed: Beginning inventory Units produced Units sold Sales price per unit Selling and administrative expenses: Variable per unit Fixed (total) ..... £ 0 ........... 20,000 19,000 350 Manufacturing costs: Direct materials ost per unit ...... 190 Direct labor cost per unit 40 25 Variable overhead cost per unit Fixed overhead (total) ........ 250,000 10 225,000 Assume that direct labor is a variable cost. Required: oven. a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

6. The Dean Company produces and sells a single product--a microwa The following data refer to the year just completed: Beginning inventory Units produced Units sold Sales price per unit Selling and administrative expenses: Variable per unit Fixed (total) ..... £ 0 ........... 20,000 19,000 350 Manufacturing costs: Direct materials ost per unit ...... 190 Direct labor cost per unit 40 25 Variable overhead cost per unit Fixed overhead (total) ........ 250,000 10 225,000 Assume that direct labor is a variable cost. Required: oven. a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

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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Units in beginning inventory -0-Units produced 8,000Units sold 6,000 Variable costs per unit: Manufacturing $15 Selling and administrative $5 Fixed costs, in total: Manufacturing $24,000 Selling and administrative $16,000 What is the unit product cost under absorption costing?
5 Question: computer for product cost per unit under variable costing?
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