The S&S Corporation produces and sells one product. The following data refer to the year just completed:

Beginning Inventory $0$ units

Units produced........................... $20,000$

Units sold...................................... $12,500$

Sales price per unit.................... $$459$

Variable selling and administrative expenses per unit $ $50$

Fixed Selling and administrative expenses $($Total$)$ $$500,000$

Manufacturing Costs:

Direct materials cost per unit..................................................$ $150$

Direct labor cost per unit..........................................................$ $95$

Variable manufacturing overhead cost per unit..............$ $40$

Fixed manufacturing overhead $($Total$).................................$$$280,000$

 

 

Required:

a$.$ What is the unit product cost for the month under variable costing?

b$.$ What is the unit product cost for the month under absorption costing?

c$.$ Prepare a contribution format income statement for the year using variable costing.

d$.$ Prepare an income statement for the year using absorption costing.

Answer rating: 100% (QA)

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