acct640 chapter 5 homework 495997
Aug 29, 2021 | Uncategorized
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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year s operations follow:
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| Units in beginning inventory |
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0 |
| Units produced |
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10,000 |
| Units sold |
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9,000 |
| Units in ending inventory |
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1,000 |
| Variable costs per unit: |
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| Direct materials |
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$ 60 |
| Direct labor |
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30 |
| Variable manufacturing overhead |
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10 |
| Variable selling and administrative |
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20 |
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| Total variable cost per unit |
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$ 120 |
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| Fixed costs: |
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| Fixed manufacturing overhead |
$ |
300,000 |
| Fixed selling and administrative |
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450,000 |
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| Total fixed costs |
$ |
750,000 |
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| 1. |
Assume that the company uses absorption costing. Compute the unit product cost for one computer desk.
| 2. |
Assume that the company uses absorption costing. Prepare an income statement.
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