Case #4 Hilern Inc. recorded the following data for the past month: Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling expenses $4.00 $3.20 $1.00 $0.40 For the past month, fixed manufacturing overhead was $4,000 and the selling and administrative expense was $3,600. At the beginning of the month, the company had 300 units in inventory. During the month, 2,000 units were produced and 2,100 units were sold at a selling price of $14 per unit. Required: (A) Compute the per-unit product cost using absorption costing. (B) What is the operating income (loss) using absorption costing? (C) Compute the per-unit product cost using variable costing.

Case #4 Hilern Inc. recorded the following data for the past month: Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling expenses $4.00 $3.20 $1.00 $0.40 For the past month, fixed manufacturing overhead was $4,000 and the selling and administrative expense was $3,600. At the beginning of the month, the company had 300 units in inventory. During the month, 2,000 units were produced and 2,100 units were sold at a selling price of $14 per unit. Required: (A) Compute the per-unit product cost using absorption costing. (B) What is the operating income (loss) using absorption costing? (C) Compute the per-unit product cost using variable costing.

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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