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  3. (12 points) penny black ltd., which has only one p

(12 points) Penny Black Ltd., which has only one product, has provided the following ...

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Accounting

(12 points) Penny Black Ltd., which has only one product, has provided the following
data concerning its most recent month of operations:
Selling price
Units in beginning inventory
Units produced.
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead.
Variable selling and administrative
Fixed costs (in total):
Fixed manufacturing overhead
Fixed selling and administrative.
$112
0
25,100
22,320
2,780
0
$156,875
$125,000
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 an income statement for the month using the contribution format and
the variable costing method.
d. Prepare an income statement for the month using the traditional format and
the absorption costing method.
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