Qasimi Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$105
|
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
20,000
|
|
Units sold
|
17,000
|
|
Units in ending inventory
|
3,000
|
|
|
Variable costs per unit:
|
|
|
Direct materials
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$32
|
|
Direct labor
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$27
|
|
Variable manufacturing overhead
|
$8
|
|
Variable selling and administrative
|
$5
|
|
|
Fixed Costs
|
|
|
Fixed manufacturing overhead
|
$220,000
|
|
Fixed selling and administrative
|
$170,000
|
Required:
- What is the unit product cost for the month under variable costing?
- What is the unit product cost for the month under absorption costing?
- prepare an income statement for the month using the contribution format and the variable costing method.
- prepare an income statement for the month using the traditional format and the absorption costing method.