What is the unit product cost for the month under variable costing? ( Round your

Question

What is the unit product cost for the month under variable costing? (Round your answer to 1 decimal place. Omit the "$" sign in your response.)

What is the unit product cost for the month under absorption costing? (Round your answer to 1 decimal place. Omit the "$" sign in your response.)

Selling price $ 109   Units in beginning inventory 540   Units produced 6,950   Units sold 6,910   Units in ending inventory 580   Variable costs per unit:      Direct materials $ 39.2      Direct labor $ 26.8      Variable manufacturing overhead $ 2.4      Variable selling and administrative $ 7.4   Fixed costs:      Fixed manufacturing overhead $ 45,870      Fixed selling and administrative $ 82,100

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Unit Product Cost = 39.2 + 26.8 +2.4 = 68.4

Part B:

Unit Product Cost = (39.2 + 26.8 + 2.4) + 45870/6950 = 75

Thanks.

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