Question

Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During 2019, 50,000 units were produced, and 40,000 units were sold. Costs for 2019 were: Fixed Portion $0 Direct materials Direct labor Manufacturing overhead Selling and administrative expenses Variable Portion $2.00 per unit produced $1.50 per unit produced $0.75 per unit produced $0.25 per unit sold $50,000 $80,000

Answer 1

97. under variable costing, tetal beriod cost = (Fixed manue forcturing over nefactwing ovewherd + variable selling and administratore expenser of Fixed Selling and administrative expenses) $50,000+ C40900 X $0.25 per their Sold )+ $80,000} = ($50,000 + 10,070 + $80,000) $ 140,000 expenses 38. Under absorptiers Costing, tetme period. Cost = (Fixed Setting and administrative stream & variable selling and administrative, 2 $80,000 #10,000 = $90,000 36. product soublier costing par product Cost per Drit under varuable costing Direct Material costi Direct Material 9.00 Direet Labour 11.50 Direct Labour 1.50 Manufacturing overhead . Cvariable) 10.75 dezh 10.75 Manufacturing overhead (variable) Manufactement CFixed) 1.00 $50070 50,071 Unels) $5.25 . $425

units calculation of closing stock Spening Stock (+) production 50,070 ( Sold 50.000 40,000 10,000 units closing stock. value of closing stock. Absorption nosting (10,800 X 5.25) 52500 Variable costing (10,000 X 4.25 42500 value of closing stock $10,000 36 Ans) unders absorption posting fixed overhead deferred in Suventory is $10,000 the ending