The following information is available for Shalom Company for its first year of operations: UNITS Produced 15,000
Question:
The following information is available for Shalom Company for its first year of operations:
UNITS
Produced 15,000
Sold 12,000
COSTS
Direct materials 6 per unit
Direct labor 10 per unit
Manufacturing overhead 2 per unit
Manufacturing overhead 180,000 per month
Sales price 75 per unit
Net income (AC) 188,000
Provide answers to the following items:
ABSORPTION COSTING
(1) What is the cost per unit?30
(2) What is the gross profit margin ratio?60%
(3) What is the total Selling and Administrative Expense during the year?352,000
(4) What amount shall be reflected as cost of Shalom Company's ending inventory?90,000 VARIABLE COSTING
(5) What is the cost per unit?18 (6) What is the contribution margin ratio?60%]
(7) What is the net income?152,000
(8) If this costing will be used, what would Shalom Company show as value of ending inventory?54,000
Expert Answer:
1 Cost per unit Total variable and fixed costtotal unit produced 45000015000 30 2 Gross margin ratio ... View the full answer
