Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: Number of units produced Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expenses The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit product cost under variable costing. a. Absorption costing b. Variable costing Unit Product Cost 13,700 $ 126 $ 63 $9 $9 $ 808,300 $ 301,400

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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TB Problem Qu. 6-256 (Algo) Murphy Incorporated, which produces a single...
Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation:
Number of units produced
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative expenses
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative expenses
The company had no beginning or ending inventories.
Required:
a. Compute the unit product cost under absorption costing.
b. Compute the unit product cost under variable costing.
a. Absorption costing
b. Variable costing
Unit
Product Cost
13,700
$ 126
$63
$9
$9
$ 808,300.
$ 301,400
Transcribed Image Text:TB Problem Qu. 6-256 (Algo) Murphy Incorporated, which produces a single... Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: Number of units produced Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expenses The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit product cost under variable costing. a. Absorption costing b. Variable costing Unit Product Cost 13,700 $ 126 $63 $9 $9 $ 808,300. $ 301,400
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