Pachur Company, which has only one product, has provided the following data concerning its most recent...

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Accounting

Pachur Company, which has only one product, has provided thefollowing data concerning its most recent month of operations:
Selling Price $121
Units in beginning inventory 300
Units produced 6900
Units sold    7100
Units in ending inventory   100
Variable costs per unit:
Direct materials $36
Direct labor $43
Variable manufacturing overhead $3
Variable selling and administrative $11
Fixed Costs:
Fixed manufacturing overhead $131100
Fixed selling and administrative  $49700

The company produces the same number of units every month, althoughthe sales in units vary from month to month. The company's variablecosts per unit and total fixed costs have been constant from monthto month.

Required;  (present with no decimal places) :
What is the unit product cost for the month under variablecosting? $

Determine the absorption costing net operating income for themonth. $

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4.1 Ratings (552 Votes)

1 For calculating unit product cost under variable costing only variable costs attributable to manufacture are included such as manufacturing labor and manufacturing overheads Calculation of unit See Answer

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