A company makes 200 units of A and 500 units of B. All the units of B

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A company makes 200 units of A and 500 units of B. All the units of B are sold and one-half of the units of A are sold. There was no beginning inventory, but 100 units of A are in ending inventory. Product A sells for \($5\) per unit and product B sells for \($10\) per unit. The variable cost of making product A is \($2\) per unit and the variable cost of making product B is \($6\) per unit. There are no fixed costs other than \($900\) of costs that are allocated to the two products.

Calculate the profit with \($600\) allocated to product A and \($300\) allocated to product B.

Calculate the profit with \($300\) allocated to product A and \($600\) allocated to product B.

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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