Explore BrainMass
Share

Unit Production Cost

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Oasimi Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price............................................................................ $121
Units in beginning inventory.......................................................0
Units produced........................................................................ 4,300
Units sold................................................................................ 4,000
Units in ending inventory............................................................300

Variable costs per unit:
Direct materials..................................................................... $44
Direct labor......................................................................... $35
Variable manufacturing overhead............................................. $7
Variable selling and administrative............................................ $5

Fixed costs:
Fixed manufacturing overhead................................................ $34,400
Fixed selling and administrative............................................... $72,000

Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare an income statement for the month using the contribution format and the variable costing method.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Using the reconciliation method)

© BrainMass Inc. brainmass.com October 25, 2018, 8:06 am ad1c9bdddf
https://brainmass.com/business/management-accounting/unit-production-cost-526338

Solution Summary

Solution prepares an income statement for the month using the contribution format and the variable costing method

$2.19
See Also This Related BrainMass Solution

Prepare a cost of production report for each department

1) The following data is available for the Fabricating and finishing departments of Williams manufacturing company for the month ending January 2001.

(see attached file)
Prepare a cost of production report for each department under the weighted average and FIFO methods

2) Amy Wells production company manufactures industrial chemicals. Three departments are involved in the process-blending, heating and bottling. -----Data for January and February operatings in the heating department are as follows: (see attached file)

Prepare a cost of production report for each department under the weighted average and FIFO methods

View Full Posting Details