McIntyre Manufacturing produces a single product. Last year, the company produced 20,000 units, out of which 18,000
Question:
Variable costs per unit:
Production ........... $ 10.00
S&A .............. $ 4.00
Fixed costs (total):
Production ........... $40,000
S&A ............. $20,000
Required
A. Calculate McIntyre’s total product cost, assuming the company uses variable costing.
B. Calculate McIntyre’s total product cost, assuming the company uses absorption costing.
C. Calculate McIntyre’s total period cost, assuming the company uses variable costing.
D. Calculate McIntyre’s total period cost, assuming the company uses absorption costing.
E. Explain the differences in product and period costs between the two costing methods.
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Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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