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Q1) XYZ Corp. produces video games which it sells for $36 each.  Data available for months of October and November is given below.

 

October

November

Sales

1,600 units

3,000 units

Production

2,800 units

2,800 units

Variables manufacturing cost per game

$13

$13

Sales commission per game

$6

$6

Total fixed manufacturing overhead

$8,400

$8,400

Total fixed marketing and administrative costs

$7,500

$7,500

Variables manufacturing cost program includes $7 for direct material.

a ) Find out unit product cost for each month by using absorption, variable and throughput costing approaches.

b)  Make the income statement for November by using variable costing approach.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916877

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