Homework Help is Here – Start Your Trial Now!
Business
Accounting
Gloc Company produces and sells delicacies. Direct materials regarding production amounted to 240 per unit. Direct labor was estimated to be 45 per unit and variable manufacturing expenses are expected to be 15 per unit. Fixed factory overhead amounted to a total of 5,000,000. Fixed administrative expenses amounted to a total of 1,800,000 per year with sales commissions of 60 per unit. For the year ended, out of the 100,000 produced, only 60,000 units were sold. What is the inventoriable cost per unit using absorption costing? What is the inventoriable cost per unit using variable costing?

Gloc Company produces and sells delicacies. Direct materials regarding production amounted to 240 per unit. Direct labor was estimated to be 45 per unit and variable manufacturing expenses are expected to be 15 per unit. Fixed factory overhead amounted to a total of 5,000,000. Fixed administrative expenses amounted to a total of 1,800,000 per year with sales commissions of 60 per unit. For the year ended, out of the 100,000 produced, only 60,000 units were sold. What is the inventoriable cost per unit using absorption costing? What is the inventoriable cost per unit using variable costing?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Gloc Company produces and sells delicacies. Direct materials regarding production amounted to 240 per unit. Direct labor was estimated to be 45 per unit and variable manufacturing expenses are expected to be 15 per unit. Fixed factory overhead amounted to a total of 5,000,000. Fixed administrative expenses amounted to a total of 1,800,000 per year with sales commissions of 60 per unit.

 

For the year ended, out of the 100,000 produced, only 60,000 units were sold.

 

What is the inventoriable cost per unit using absorption costing?

 

What is the inventoriable cost per unit using variable costing?

Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS