Evaluate the unit product cost for each month

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Reference no: EM139962

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	2,800 units
Variables manufacturing cost per game	$13	$13
Sales commission per game	$6	$6
Total fixed manufacturing overhead	$8,400	$8,400
Total fixed marketing and administrative costs	$7,500	$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

Reference no: EM139962

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