Question - The maffei company which has only one product has provided the following data concerning its most recent month of operations:
Selling price $175.00
Units in inventory 0
Units produced $9500
Units sold 8000
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 the 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?