WITH THE FOLLOWING BACKGROUND PREPARE COSTING: - UNIT SELLING PRICES $10,000. - UNIT RAW MATERIAL $400. - SALARY OF 2 OPERATORS: THE FIRST ONE WITH A FIXED SALARY IN PRODUCTION FOR A MONTHLY VALUE OF $500.000. AND THE SECOND WITH A TOTAL VARIABLE SALARY OF $45 PER UNIT PRODUCED. - THE PRODUCTION SUPERVISOR HAS A VARIABLE MONTHLY SALARY OF $10,000 PER UNIT OF ARTICLE PRODUCED. - A FIXED SALARY IN ADMINISTRATION OF $500,000 PER MONTH. - VARIABLE SALES SALARIES ARE 3% OF SALES. - THERE ARE PRODUCTION MACHINERY DEPRECIATION COSTS OF $20 PER UNIT PRODUCED. - THE COST OF LEASING THE PRODUCTION CENTER IS $100- PER KILO PRODUCED. - PRODUCTION UNITS ARE 20,000 UNITS. - 15,000 UNITS ARE SOLD, IT IS REQUESTED: 1. ABSORPTIVE OR TRADITIONAL METHOD COSTING. 2. DIRECT OR VARIABLE METHOD COSTING.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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WITH THE FOLLOWING BACKGROUND PREPARE COSTING: - UNIT SELLING PRICES $10,000. - UNIT RAW MATERIAL $400. - SALARY OF 2 OPERATORS: THE FIRST ONE WITH A FIXED SALARY IN PRODUCTION FOR A MONTHLY VALUE OF $500.000. AND THE SECOND WITH A TOTAL VARIABLE SALARY OF $45 PER UNIT PRODUCED. - THE PRODUCTION SUPERVISOR HAS A VARIABLE MONTHLY SALARY OF $10,000 PER UNIT OF ARTICLE PRODUCED. - A FIXED SALARY IN ADMINISTRATION OF $500,000 PER MONTH. - VARIABLE SALES SALARIES ARE 3% OF SALES. - THERE ARE PRODUCTION MACHINERY DEPRECIATION COSTS OF $20 PER UNIT PRODUCED. - THE COST OF LEASING THE PRODUCTION CENTER IS $100- PER KILO PRODUCED. - PRODUCTION UNITS ARE 20,000 UNITS. - 15,000 UNITS ARE SOLD, IT IS REQUESTED: 1. ABSORPTIVE OR TRADITIONAL METHOD COSTING. 2. DIRECT OR VARIABLE METHOD COSTING.
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