Al-Faisal has only one product, and provided the following data related to the last month of operations
Question:
Al-Faisal has only one product, and provided the following data related to the last month of operations:
| Selling price (in dollar) | 200 |
| Number of units produced each month | 1800 |
| units Sold | 1200 |
| Variable costs per unit (in dollar ): | |
| direct material | 50 |
| direct labor | 30 |
| variable manufacturing overhead costs | 10 |
| variable Selling and administrative expenses | 2 |
| Fixed costs per month | |
| Fixed manufacturing overhead costs | 7200 |
| Fixed Selling and administrative expenses | 3600 |
The company produces the same number of units each month, although sales by units vary from month to month. The unit variable cost and the company's total fixed cost were constant from month to month.
Required:
A. What are the production costs per unit for the month under the variable costing method?
B. What are the production costs per unit for the month under the total costs method?
c. Prepare an income statement in contribution format for the month using the variable costing method.
D. Prepare the income statement for the month using the total costs method.
E. Match the net operating income under the variable cost method and the total cost method for the month.
