Problems 1. During the most recent year, Pilkey Ltd had the following date associated with the pro it makes: Units in beginning inventory Units produced 10,000 units 8,000 units Units sold ($300 per unit) Variable costs per unit: Direct materials $50 Direct labour $100 Variable overhead $50 Fixed costs: $25 Fixed manufacturing overhead per unit produced Fixed selling and administrative $100,000 Required: 1. Calculate the unit product cost using both absorption and variable costing. 2. Prepare an income statement using absorption costing. 3. Prepare an income statement using variable costing.
Problems 1. During the most recent year, Pilkey Ltd had the following date associated with the pro it makes: Units in beginning inventory Units produced 10,000 units 8,000 units Units sold ($300 per unit) Variable costs per unit: Direct materials $50 Direct labour $100 Variable overhead $50 Fixed costs: $25 Fixed manufacturing overhead per unit produced Fixed selling and administrative $100,000 Required: 1. Calculate the unit product cost using both absorption and variable costing. 2. Prepare an income statement using absorption costing. 3. Prepare an income statement using variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problems
1. During the most recent year, Pilkey Ltd had the following date associated with the product
it makes:
Units in beginning inventory
Units produced
10,000 units
8,000 units
Units sold ($300 per unit)
Variable costs per unit:
Direct materials
$50
Direct labour
$100
Variable overhead
$50
Fixed costs:
$25
Fixed manufacturing overhead per unit produced
Fixed selling and administrative
$100,000
Required:
1. Calculate the unit product cost using both absorption and variable costing.
2. Prepare an income statement using absorption costing.
3. Prepare an income statement using variable costing.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8c491fe-873b-4c92-a492-70fd693654c7%2F49b3445e-1a06-4e5f-97d8-7231a9a7e637%2Fgp4fnx6_processed.png&w=3840&q=75)
Transcribed Image Text:Problems
1. During the most recent year, Pilkey Ltd had the following date associated with the product
it makes:
Units in beginning inventory
Units produced
10,000 units
8,000 units
Units sold ($300 per unit)
Variable costs per unit:
Direct materials
$50
Direct labour
$100
Variable overhead
$50
Fixed costs:
$25
Fixed manufacturing overhead per unit produced
Fixed selling and administrative
$100,000
Required:
1. Calculate the unit product cost using both absorption and variable costing.
2. Prepare an income statement using absorption costing.
3. Prepare an income statement using variable costing.
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