Problem: Tiny Tim’s Bookcases- Variable Costing vs Full Costing
The information for Tiny Tim's Bookcases for the first two years of its operations is as follows:
Selling price per unit $600
Variable production costs per unit produced $210
Variable selling costs per unit per unit sold $12
Fixed production costs $75,000
Fixed selling and administrative expenses $46,000
Units sold each year 1,000 units
Annual production in units:
2010 1,000 units
2011 1,250 units
Part I: Compute the unit product cost under full (absorption) costing for 2010.
Part II: Compute the unit product cost under variable costing for 2010.
Part III: Prepare a variable costing income statement for 2010. No statement heading is required.
Part IV: Prepare a full (absorption) costing income statement for 2010. No statement heading is required.
Part V: Compute the unit product cost under full (absorption) costing for 2011.
Part VI: Compute the unit product cost under variable costing for 2011.
(If you could please show the steps and the work so I can gain full understanding of what I need to do.)