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The Dean Company produces and sells a single product. The following data refer to the year just

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The Dean Company produces and sells a single product. The following data refer to the year just completed;Selling price $450;Units in beginning Inventory 0;Units produced 25,000;Units sold 22,000;Variable costs per unit;Direct materials $ 200;Direct labor $ 50;Variable manufacturing overhead $ 30;Variable selling and admin $ 15;Fixed Costs;Fixed manufacturing overhead $ 275,000;Fixed selling and admin $ 230,000;Assume that direct labor is a variable cost.;Required;a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.;b. Prepare an income statement for the year using absorption costing.;c. Prepare an income statement for the year using variable costing.

 

Paper#77494 | Written in 18-Jul-2015

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