3.

value: 8.34 points

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year?s operations follow:

Units in beginning inventory		0
Units produced		10,000
Units sold		9,000
Units in ending inventory		1,000
Variable costs per unit:
Direct materials		$ 60
Direct labor		30
Variable manufacturing overhead		10
Variable selling and administrative		20
Total variable cost per unit		$ 120
Fixed costs:
Fixed manufacturing overhead	$	300,000
Fixed selling and administrative		450,000
Total fixed costs	$	750,000

Required:

1.	Assume that the company uses absorption costing. Compute the unit product cost for one computer desk.

2.	Assume that the company uses absorption costing. Prepare an income statement.

3. value: 8.34 points CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 0 10,000 9,000 1,000 $ 60 30 10 20 Total variable cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs $ 120 $ 300,000 450,000 $ 750,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one computer desk. 2. Assume that the company uses absorption costing. Prepare an income statement