Xylo produces xylophones. Each xylophone is sold for $850. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units Produced 250 Units Sold 225 Units in ending inventory 25 Variable Costs per unit: Direct materials $100 Direct labor $320 Variable Mfg Overhead $40 Variable Selling & Admin $20 Fixed Costs: Fixed Mfg Overhead $60,000 Fixed Selling & Admin $20,000 Required: Compute the unit product cost for one xylophone under absorption costing. Compute the unit product cost for one xylophone under variable costing.
Xylo produces xylophones. Each xylophone is sold for $850. Selected data for the company’s operations last year follow:
Units in beginning inventory 0
Units Produced 250
Units Sold 225
Units in ending inventory 25
Variable Costs per unit:
Direct materials $100
Direct labor $320
Variable Mfg
Variable Selling & Admin $20
Fixed Costs:
Fixed Mfg Overhead $60,000
Fixed Selling & Admin $20,000
Required:
Compute the unit product cost for one xylophone under absorption costing.
Compute the unit product cost for one xylophone under variable costing.
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