Findus Foods company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. There were no units in beginning inventory. Cost information for this period is shown in the following table: Production costs Direct materials Direct labor Variable overhead Fixed overhead Non production costs Variable selling and administrative Fixed selling and administrative Costs $2.00 per unit 65 $.80 per unit $814,000 in total $481,000 in total $78,000 in total $210,000 in total What is the product cost per unit under absorption costing?

Findus Foods company produced 370,000 units and sold 310,000 units at a sales price of $50 per unit. There were no units in beginning inventory. Cost information for this period is shown in the following table: Production costs Direct materials Direct labor Variable overhead Fixed overhead Non production costs Variable selling and administrative Fixed selling and administrative Costs $2.00 per unit 65 $.80 per unit $814,000 in total $481,000 in total $78,000 in total $210,000 in total What is the product cost per unit under absorption 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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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $15 per UnitDirect Labor $24 per UnitVariable Overhead $4 per UnitFixed Overhead $27,200 Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing $ B. Which costing method provide higher net income? By how much? The_____method provided more net income by $_____ .
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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $16 per Unit Direct Labor $26 per Unit Variable Overhead $5 per Unit Fixed Overhead $26,800 Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing B. Which costing method provide higher net income? By how much? The absorption costing ✔method provided more net income by $
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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $16 per Unit Direct Labor $26 per Unit Variable Overhead $4 per Unit Fixed Overhead $27,200 Selling expenses are $5 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing B. Which costing method provide higher net income? By how much? The method provided more net income by $
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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory $136 0 Units produced 3,400 Units sold 2,920 Units in ending inventory 480 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $46 $24 $4 Variable selling and administrative expense $7 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expenses $68,000 $14,600 The total gross margin for the month under the absorption costing approach is: a. $108,040 b. $122,640 c. $102,200 d. $210,240