Refer to the information for Concord, Inc. Requirements 1. Using variable costing, calculate the unit product cost.
Question:
Refer to the information for Concord, Inc.
Requirements
1. Using variable costing, calculate the unit product cost.
2. Prepare an income statement using the contribution margin format.
Use the following information for Exercises
Concord, Inc. has collected the following data for November (there are no beginning inventories):
Units produced and sold ............................ 500 units
Sales price ........................................ $ 450 per unit
Direct materials .................................... 64 per unit
Direct labor ......................................... 68 per unit
Variable manufacturing overhead .............. 26 per unit
Fixed manufacturing overhead ........... 7,500 per month
Variable selling and administrative costs ...... 15 per unit
Fixed selling and administrative costs ... 4,400 per month
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Step by Step Answer:
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura