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Alpha Corp. manufactures video games that it sells for $36 each. The following data is available for the months of October and November.
October
November
Sales
1,600 units
3,000 units
Production
2,800 units
Variables manufacturing cost per game
$13
Sales commission per game
$6
Total fixed manufacturing overhead
$8,400
Total fixed marketing and administrative costs
$7,500
*variables manufacturing cost program includes $7 for direct material.
a Determine the unit product cost for each month using the absorption, variable and throughput costing approaches.
b Prepare an income statement for November using the variable costing approach
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