Mahugh Corporation, which has only one product, has provided the following data concerning its most recent...

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Accounting

Mahugh Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations:
Selling price 187
Units in beginninginventory 0
Units produced 3,660
Units sold 3,100
Units in endinginventory 560
Variable costs perunit:
Directmaterials 50
Direct labor 55
Variablemanufacturing overhead 17
Variable selling andadministrative 19
Fixed costs:
Fixed manufacturingoverhead $ 124,440
Fixed selling andadministrative $ 9,300

Required:
a. What is the unit product cost for the monthunder variable costing? (Do not round intermediatecalculations.)
b.  What is the unit product cost forthe month under absorption costing?
c.  Prepare a contribution formatincome statement for the month using variable costing.
d.  Prepare an income statement forthe month using absorption costing.

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3.7 Ratings (294 Votes)

aCALCULATION OF UNIT PRODUCT COST UNDER VARIABLE COST SYSTEM SLNO DETAILS AMOUNT 1 DIRECT MATERIALS 50 2 DIRECT LABOUR 55 3 VARIABLE MANUFACTURING OVERHEAD 17 4 TOTAL COST PER UNIT 122 bCALCULATION UNIT PRODUCT COST UNDER ABSORPTION COST SYSTEM SLNO DETAILS AMOUNT 1 DIRECT MATERIALS 50 2 See Answer

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Selling price		187
Units in beginninginventory		0
Units produced		3,660
Units sold		3,100
Units in endinginventory		560
Variable costs perunit:
Directmaterials		50
Direct labor		55
Variablemanufacturing overhead		17
Variable selling andadministrative		19
Fixed costs:
Fixed manufacturingoverhead	$	124,440
Fixed selling andadministrative	$	9,300