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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Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10060. All amounts are in OMR. |Total Costs |500000 Variable Cost ? | 400000 Fixed Cost |Direct material cost |Total labor cost |Manufacturing Overhead ? 100000 90000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+ vX, D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
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Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year $ 200 $ 75 $ 50 $ 10 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the company's gross margin per unit?
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the total period cost for the month under absorption costing? $ 133 0 7,000 6,800 200 $ 41 $ 57 $ 5 $4 $133,000 $ 34,000