Accounting
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Cost (50 points)
| Manufacturing costs: | ||
| Variable costs per unit: | ||
| Direct materials | $12 | |
| Variable manufacturing overhead | $1 | |
| Fixed manufacturing overhead costs (total) | $100,000 | |
| Selling and administrative costs: | ||
| Variable | 7% of sales | |
| Fixed (total) | $31,000 | |
Because the production is highly automated, the company includes its labor costs in its fixed manufacturing overhead. The gallons of paint sell for $68 each. During September, the first month of operations, the following activity was recorded:
Units produced 5,000
Units sold 4,000
Submit an Excel document which each tab labeled by item number in good form that demonstrates the following:
- Compute the unit product cost under:
- Absorption costing
- Variable costing
- Prepare an absorption costing income statement for September
- Prepare a contribution format income statement for September using variable costing
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