Compute production cost per unit under variable costing


Question:

Home Base, Inc. reports the following production cost information:

Units produced

97,000 units

Units sold

92,000 units

Direct labor

$17.00 per unit

Direct materials

$34.00 per unit

Variable overhead

$2,522

Fixed overhead

$1,940

Required:

a) Compute production cost per unit under variable costing.

b) Compute production cost per unit under absorption costing.

c) Determine the cost of ending inventory using variable costing.

d) Determine the cost of ending inventory using absorption costing.

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Cost Accounting: Compute production cost per unit under variable costing
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