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1. If variable manufacturing costs are $15 per uni...

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1. If variable manufacturing costs are $15 per unit and total fixed manufacturing costs are $200,000, what is the manufacturing cost per unit if: (a) 20,000 units are manufactured and the company uses the variable costing concept? (b) 25,000 units are manufactured and the company uses the variable costing concept? (c) 20,000 units are manufactured and the company uses the absorption costing concept? (d) 25,000 units are manufactured and the company used the absorption costing concept? 2. On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January: Units Production 50,000 Sales ($18 per unit) 42,000 Inventory, January 31 8,000 Manufacturing costs: Variable $575,000 Fixed 80,000 Total $655,000 Selling and administrative expenses: Variable $ 35,000 Fixed 10,500 Total $ 45,500 (a) Prepare an income statement using absorption costing. (b) Prepare an income statement using variable costing.

 

Paper#13008 | Written in 18-Jul-2015

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