Question - Jarvis Golf Company sells a special putter for $20 each. In March, it sold 28,000 putters while manufacturing 30,000. There was no beginning inventory on March 1. Production information for March was:

Direct manufacturing labor per unit 15 minutes

Fixed selling and administrative costs $ 40,000

Fixed manufacturing overhead 132,000

Direct materials cost per unit 2

Direct manufacturing labor per hour 24

Variable manufacturing overhead per unit 4

Variable selling expenses per unit 2

Required:

a. Compute the cost per unit under both absorption and variable costing.

b. Compute the ending inventories under both absorption and variable costing.

c. Compute operating income under both absorption and variable costing.