Refer to the information for Organic, Inc. Organic, Inc. has collected the following data for November (there are no beginning inventories):
Units produced and sold ............ 300 units
Sales price ................$ 275 per unit
Direct materials .............. 53 per unit
Direct labor ................. 76 per unit
Variable manufacturing overhead ......... 28 per unit
Fixed manufacturing overhead .......... 4,350 per month
Variable selling and administrative costs ..... 20 per unit
Fixed selling and administrative costs ..... 4,675 per month
Requirements
1. Using variable costing, calculate the unit product cost.
2. Prepare an income statement using the contribution margin format.