Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price |
|
$ 175 |
| |
|
|
| Units in beginning inventory |
|
0 |
| Units produced |
|
9,500 |
| Units sold |
|
8,000 |
| Units in ending Inventory |
|
1,500 |
| |
|
|
| Variable costs per unit: |
|
|
| Direct materials |
|
$ 55 |
| Direct labor |
|
$ 38 |
| Variable manufacturing overhead |
|
$ 2 |
| Variable selling and admin |
|
$ 10 |
| |
|
|
| Fixed costs: |
|
|
| Fixed manufacturing overhead |
|
$ 300,000 |
| Fixed selling and admin |
|
$ 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 variable costing method.
d. Prepare an income statement for the month using the absorption costing method.