Solution 1a:
Computation of Unit Product Cost - Absorption Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Variable manufacturing cost | $25.00 |
Fixed
manufacturing overhead (666,000 / 37000) |
$18.00 |
Unit Product Cost | $43.00 |
Solution 1b:
High Country Inc. | ||
Full Absorption income statement | ||
Particulars | Details | Amount |
Sales | $2,528,000.00 | |
Cost of Goods Sold: | ||
Cost of goods produced (37000*$43) | $1,591,000.00 | |
Add: Opening Inventory | $0.00 | |
Less: Ending Inventory (5000*$43) | $215,000.00 | $1,376,000.00 |
Gross Profit | $1,152,000.00 | |
Variable Selling & administrative expenses | $96,000.00 | |
fixed Selling & administrative expenses | $568,000.00 | |
Net Operating Income | $488,000.00 |
Solution 2a:
Computation of Unit Product Cost - Variable Costing | |
Particulars | Per unit |
Unit Product Cost: | |
Direct material | $14.00 |
Direct Labor | $7.00 |
Variable manufacturing overhead | $4.00 |
Unit product cost | $25.00 |
Solution 2b:
High Country Inc. | ||
Contribution margin income statement | ||
Particulars | Per unit | Amount |
Sales | $79.00 | $2,528,000.00 |
Variable costs: | ||
Variable manufacturing cost | $25.00 | $800,000.00 |
Variable Selling and administrative expenses | $3.00 | $96,000.00 |
Contribution | $51.00 | $1,632,000.00 |
Fixed Manufacturing Costs | $666,000.00 | |
fixed Selling & administrative expenses | $568,000.00 | |
Net Income | $398,000.00 |
High Country, Inc., produces and sells many recreational products. The company has just opened a new...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 10 points 49,000 44,000 84 eBook Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 0 37,000 32,000 83 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 45,000 40,000 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 49,000 44,000 85 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 0 49,000 44,000 75 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses : Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 0 49,000 44,000 79 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 46,000 Units sold 41,000 Selling price per unit $76 Selling and administrative expenses: Variable per unit $4 Fixed per month $ 568,000 Manufacturing costs: Direct materials cost per...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced 35,000 Units sold 30,000 Selling price per unit $ 81 Selling and administrative expenses: Variable per unit Fixed (per month) $570,000 Manufacturing costs: Direct materials cost per unit $...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 44,000 39,000 76 A Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor...
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 40,000 35,000 85 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost...