Calculate the per unit product cost of one computer

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Reference no: EM132633859

Jerry Computers has the following data for year 2019:

Opening inventory: 0 Units
Sales: 8,000 Units
Production: 10,000 Units
Closing inventory: 2,000 Units
Direct materials: $240
Direct labor: $280
Variable manufacturing overhead expenses: $100
Variable selling and administrative expenses: $40
Fixed manufacturing overhead expenses: $1,200,000
Fixed selling and administrative expenses: $800,000

Question 1: Calculate the per unit product cost of one computer under the following 2 systems:

  1. absorption costing system.
  2. variable costing system.

Reference no: EM132633859

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