Dimmick Corporation produces and sells a single product at $10per unit. During 2012, the company produced 100,000 units, 90,000of which were sold during the year. All ending inventory was infinished goods inventory; there was no inventory on hand at thebeginning of the year. The following data relate to the company'sproduction process:
Direct materials used in production $ 200,000
Direct labor 180,000
Variable Manufacturing overhead 150,000
Fixed Manufacturing overhead 80,000
Variable Selling and Administrative 175,000
Fixed Selling and Administrative 65,000
Required: Calculate the following.
(a) The unit cost of ending inventory on the balance sheetprepared for stockholders. ______________
(b) The unit cost of ending inventory on a variable cost balancesheet. ______________
(c) The operating income using absorption costing.______________
(d) The operating income using variable costing.______________
Please post solutions - need for a study guide. Thank you.
Dimmick Corporation produces and sells a single product at $10per unit. During 2012, the company produced 100,000 units, 90,000of which were sold during the year. All ending inventory was infinished goods inventory; there was no inventory on hand at thebeginning of the year. The following data relate to the company'sproduction process:
Direct materials used in production $ 200,000
Direct labor 180,000
Variable Manufacturing overhead 150,000
Fixed Manufacturing overhead 80,000
Variable Selling and Administrative 175,000
Fixed Selling and Administrative 65,000
Required: Calculate the following.
(a) The unit cost of ending inventory on the balance sheetprepared for stockholders. ______________
(b) The unit cost of ending inventory on a variable cost balancesheet. ______________
(c) The operating income using absorption costing.______________
(d) The operating income using variable costing.______________
Please post solutions - need for a study guide. Thank you.