Question 1 During the most recent year, Jerai Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (RM300 per unit) 300 15,000 12,700 Variable costs per unit RM Direct materials 20 Direct labor 60 Variable overhead 12 Fixed costs Fixed overhead per unit produced Fixed selling and administrative 30 140,000 Refer to the data above: a) How many units are in ending inventory? b) Using absorption costing and variable costing, calculate the per unit product cost. c) What is the value of ending inventory under absorption costing and variable costing? d) Calculate the cost of goods sold under absorption costing and variable costing. e) Prepare an income statement using absorption costing and variable costing.

Question 1 During the most recent year, Jerai Company had the following data associated with the product it makes: Units in beginning inventory Units produced Units sold (RM300 per unit) 300 15,000 12,700 Variable costs per unit RM Direct materials 20 Direct labor 60 Variable overhead 12 Fixed costs Fixed overhead per unit produced Fixed selling and administrative 30 140,000 Refer to the data above: a) How many units are in ending inventory? b) Using absorption costing and variable costing, calculate the per unit product cost. c) What is the value of ending inventory under absorption costing and variable costing? d) Calculate the cost of goods sold under absorption costing and variable costing. e) Prepare an income statement using absorption costing and variable 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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