Reference no: EM132548232

Scotty Industries Limited is a manufacturer of a single product. The company has provided the following data concerning its most recent month of operations:

Selling price                                             $108

Units in beginning in inventory                      NIL

Units produced                                       1,100

Units sold                                                 900

Units in ending inventory                            200

Variable cost per unit:

Direct materials                                        $28

Direct labour                                             $30

Variable manufacturing overhead                  $7

Variable selling & administrative                      $11

Fixed costs:

Fixed manufacturing overhead                   $14,300

Fixed selling and administrative                     $1,800

Question a) Compute the unit product cost under variable/marginal costing

Question b) Prepare a income statement for the month using the variable/marginal costing method.

Question c) Compute the unit product cost under absorption costing

Question d) Prepare a income statement for the month using the absorption costing method.