Engkobee Company sells a single product for $25. It had no beginning inventories. Operating data follow. Sales, 27,000 units $675,000 Normal capacity 30,000 units Production costs: Variable per unit $13 Fixed production $150,000 Selling and administrative expenses: Variable per unit sold $2 Fixed selling $20,000 Number of units produced 32,500 units Assume the actual costs were as budgeted. Requirements: a. Find contribution margin per unit. b. Compute the ending inventory under standard variable costing. c. Compute the income under standard variable costing.
Engkobee Company sells a single product for $25. It had no beginning inventories. Operating data follow. Sales, 27,000 units $675,000 Normal capacity 30,000 units Production costs: Variable per unit $13 Fixed production $150,000 Selling and administrative expenses: Variable per unit sold $2 Fixed selling $20,000 Number of units produced 32,500 units Assume the actual costs were as budgeted. Requirements: a. Find contribution margin per unit. b. Compute the ending inventory under standard variable costing. c. Compute the income under standard variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Engkobee Company sells a single product for $25. It had no beginning inventories. Operating data
follow.
Sales, 27,000 units $675,000
Normal capacity 30,000 units
Production costs:
Variable per unit $13
Fixed production $150,000
Selling and administrative expenses:
Variable per unit sold $2
Fixed selling $20,000
Number of units produced 32,500 units
Assume the actual costs were as budgeted.
Requirements:
a. Find contribution margin per unit.
b. Compute the ending inventory under
c. Compute the income under standard variable costing.
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