Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.
Calculate the production cost per unit under absorption and variable costing assuming direct material cost was $15 per unit, direct labor cost $13.50 per unit, variable overhead $6 per unit, and fixed overhead costs were $220,000. The company had a beginning finished goods inventory of 10,000 units, produced 80,000 units this period, and sold 85,000 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Calculate the production cost per unit under absorption and
variable costing assuming direct material cost was $15 per unit,
direct labor cost $13.50 per unit, variable overhead $6 per unit,
and fixed overhead costs were $220,000. The company had a
beginning finished goods inventory of 10,000 units, produced
80,000 units this period, and sold 85,000 units.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae5fbb2b-0617-496b-a0f6-9b26370cede4%2Fbb50c20d-5782-4e80-9651-968af2056289%2Fq4m968q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate the production cost per unit under absorption and
variable costing assuming direct material cost was $15 per unit,
direct labor cost $13.50 per unit, variable overhead $6 per unit,
and fixed overhead costs were $220,000. The company had a
beginning finished goods inventory of 10,000 units, produced
80,000 units this period, and sold 85,000 units.
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