Whitehall Company sells a single product for $ 25 . It had no beginning inventories . Operating
Question:
Whitehall Company sells a single product for $ 25 . It had no beginning inventories . Operating data follow .
Sales , 27,000 units $ 675,000
Normal capacity 30,000 units
Production costs :
Variable per unit $ 13
Fixed production $ 150,000
Selling and administrative expenses :
Variable per unit sold $ 2
Fixed selling $ 20,000
Number of units produced 32,500 units
Assume the actual costs were as budgeted .
a . Find contribution margin per unit
b . Compute the ending inventory under standard variable costing
c . Compute the income under standard variable costing
Assume standard absorption costing using normal capacity as the basis for computing the standard fixed cost per unit . Compute:
d . Standard gross profit per unit
e . Ending inventory
f . Volume variance
g . Income
