The S&S Corporation produces and sells one product. The following data refer to the year just completed: Beginning Inventory 0 units Units produced........................... 20,000 Units sold...................................... 12,500 Sales price per unit.................... $550 Variable selling and administrative expenses per unit $ 50 Fixed Selling and administrative expenses (Total) $500,000 Manufacturing Costs: Direct materials cost per unit..................................................$ 150 Direct labor cost per unit..........................................................$ 95 Variable manufacturing overhead cost per unit..............$ 40 Fixed manufacturing overhead (Total).................................$300,000 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the year using variable costing. d. Prepare an income statement for the year using absorption costing
The S&S Corporation produces and sells one product. The following data refer to the year just completed:
Beginning Inventory 0 units
Units produced........................... 20,000
Units sold...................................... 12,500
Sales price per unit.................... $550
Variable selling and administrative expenses per unit $ 50
Fixed Selling and administrative expenses (Total) $500,000
Direct materials cost per unit..................................................$ 150
Direct labor cost per unit..........................................................$ 95
Variable manufacturing
Fixed manufacturing overhead (Total).................................$300,000
Required:
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the year using variable costing.
d. Prepare an income statement for the year using absorption costing.
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