Required: 1. Compute the unit product cost under each of the following costing method. a Absorption costing) b Vaniable costing Unit Product Cost 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) Cost of goods sold

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required:
1. Compute the unit product cost under each of the following costing method.
a Absorption costing
b Vanable costing
Unit Product
Cost
2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is
required.)
Cost of goods sold
Transcribed Image Text:Required: 1. Compute the unit product cost under each of the following costing method. a Absorption costing b Vanable costing Unit Product Cost 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a O wherever it is required.) Cost of goods sold
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The
division's monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct materials
Variable manufacturing overhead
Fixed manufacturing overhead costs (total)
Selling and administrative costs:
Variable
Fixed (total)
Units produced
Units sold
4,470
3,210
Aktination
$
$
178
13
$433,590
Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore.
production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell
for $496 each.
During the first month of operations, the following activity was recorded:
Unit Product
Cost
15% of sales
$272,670
Required:
1. Compute the unit product cost under each of the following costing method..
Transcribed Image Text:Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold 4,470 3,210 Aktination $ $ 178 13 $433,590 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore. production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $496 each. During the first month of operations, the following activity was recorded: Unit Product Cost 15% of sales $272,670 Required: 1. Compute the unit product cost under each of the following costing method..
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