Reference no: EM132802999

XYZ Corporation manufactures only one type of product and has provided the following information:

Selling Price per unit $140

Units in Beginning Inventory 100

Units produced 3200

Units sold 3000

Units in Ending Inventory ?

Fixed costs per month:

Fixed manufacturing overhead $88,600

Fixed selling and administrative $32,000

Variable Costs per unit:

Direct Material $41

Direct Labour $22.50

Manufacturing Overhead (variable ) $7

Selling & Admin (variable) $10

Required:

Problem 1: Calculate the unit product cost for the month under variable costing.

Problem 2: Calculate the unit product cost for the month under absorption costing.

Problem 3: Prepare the Income Statement for the month, using the variable costing method.