This is a full variable costing for a Cookie Business.

1st Under Full (Obsorption) costing: WE need to find Full cost per Unit and Ending inventory Full (absorption) costing.

2nd under Variable costing: We need to find Varianle cost per unit and Ending inventory Variable costing".

This is a 5301 Managerial Applications of Accounting course.

Cookie Business
Productions Costs:
Direct material	$ 0.60
Direct labor	$ 1.00
Variable manufacturing overhead	$ 0.40
Total variable manufacturing costs per unit	$ 2.00
Fixed manufacturing overhead per year	$ 139,000.00
In addition, the company has fixed selling and administrative costs:
Fixed selling costs per year	$ 50,000.00
Fixed administrative costs per year	$ 65,000.00
Selling price per cookie	$ 3.75
Number of cookies produced	2,780,000
Number of cookies sold	2,600,000
Full (absorption) costing :
Full cost per unit
Ending Inventory Full (absorption) costing
Variable costing :
Variable cost per unit
Ending Inventory Variable costing