determine unit cost under variable costing? Beginning inventoryUnits produced45,000Units sold40,000Selling price per unitSelling and administrative expenses:$81Variable per unit$ 2$ 561,000Fixed (per month)Manufacturing costs:Direct materials cost per unit$ 15$ 9Variable manufacturing overhead cost per unit $ 2Direct labor cost per unitFixed manufacturing overhead cost (per month) $ 720,000

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determine unit cost under variable costing?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 11MC: Beginning inventory and direct material cost added during the month total $55,000. What is the value...

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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determine unit cost under variable costing?

Beginning inventory
Units produced
45,000
Units sold
40,000
Selling price per unit
Selling and administrative expenses:
$81
Variable per unit
$ 2
$ 561,000
Fixed (per month)
Manufacturing costs:
Direct materials cost per unit
$ 15
$ 9
Variable manufacturing overhead cost per unit $ 2
Direct labor cost per unit
Fixed manufacturing overhead cost (per month) $ 720,000

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Income statement under variable costing method Beginning inventory Units produced 45,000 Units sold 40,000 $ 81 Selling price per unit Selling and administrative expenses: $ 2 $ 561,000 Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit $ 15 $ 9 Direct labor cost per unit Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 720,000
Beginning inventory Units produced 45,000 Units sold 40,000 Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) $ 81 $ 2 $ 561,000 Manufacturing costs: Direct materials cost per unit Direct labor cost per unit $ 15 $ 9 Variable manufacturing overhead cost per unit $2 Fixed manufacturing overhead cost (per month) $ 720,000 Net income under Variable costing Method
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?
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