What is unit product cost for month under variable costing

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Reference no: EM133934179

Problem

Nicholas Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 12.00
Units in beginning inventory 0
Units produced 70,000
Units sold 60,000
Units in ending inventory 10,000
Variable costs per unit:
Direct materials $ 2.00
Direct labor $ 1.00
Variable manufacturing overhead $ 1.00
Variable selling and administrative expense $ 1.50
Fixed costs:
Fixed manufacturing overhead $ 140,000
Fixed selling and administrative expense $ 150,000

Task

1. What is the unit product cost for the month under variable costing?

2. What is the unit product cost for the month under absorption costing? Get the instant assignment help.

3. Prepare a contribution format income statement for the month using variable costing.

4. Prepare an income statement for the month using absorption costing.

5. Reconcile the variable costing and absorption costing net operating incomes for the month.

Reference no: EM133934179

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