Love Companys actual costing records for the year ended December 31 are shown below. There was no
Question:
Love Company’s actual costing records for the year ended December 31 are shown below. There was no finished goods inventory at January 1, and there were no work-in-process inventories at the beginning and end of the year.
Net sales $ 1,600,000
Cost of goods manufactured: Variable $ 630,000
Fixed $ 315,000
Operating expenses: Variable $ 98,000
Fixed $ 130,000
Units manufactured 70,000
Units sold 60,000
Under absorption costing, what is the product cost per unit?
Under direct/variable costing, what is the product cost per unit?
Under the absorption costing method, Love’s operating income for the year is?
Under the direct/variable costing method, Love’s operating income for the year is?
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer