Question

Lisas Lighting produces and sells a floor lamp for $75.00 per unit. In the first month of operation, 2,500 units were produc

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Under variable costing, while calculation cost of goods sold, only variable manufacturing costs are considered. Fixed manufacturing costs are considered as period cost in variable costing.

Given, variable manufacturing costs = $20 per unit

Hence, cost of goods sold per unit under variable costing = $20

Correct option is (D)

Administrative expense and marketing cost are also period cost and hence ignored.

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.

Add a comment
Know the answer?
Add Answer to:
Lisa's Lighting produces and sells a floor lamp for $75.00 per unit. In the first month...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Patrick's Pottery produces and sells a large glazed pots for $150.00 per unit. In the first...

    Patrick's Pottery produces and sells a large glazed pots for $150.00 per unit. In the first month of operation, 3.000 units were produced and 2.250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs S 80 per unit Variable marketing costs $10 per unit Fixed manufacturing costs $60,000 per month Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials WIP Finished goods...

  • Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the first...

    Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $38 per unit Variable marketing costs $ 2 per unit Fixed manufacturing costs $60,000 per month Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials -0- WIP -0-...

  • Bright Lighting Company had net income for the first 10 months of the current year of...

    Bright Lighting Company had net income for the first 10 months of the current year of $300,000. One hundred thousand units were manufactured during this period, and 100,000 units were sold. Fixed manufacturing overhead was $3,000,000 over the 10- month period (i.e., $300,000 per month). There are no selling and administrative expenses for Bright Lighting Company. Both variable and fixed costs are expected to continue at the same rates for the balance of the vear (i.e. fixed costs at $300,000...

  • Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...

    Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...

  • Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...

    Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...

  • 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase...

    4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.00 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) (6.01) 5. For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.00 a unit how many lamps must be sold to breakeven? Breakeven sales in...

  • Market Cellular sells phones for $100. The unit variable cost per phone is $50 plus a...

    Market Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Market Cellular sold 125 units in the Month of August - Create a Total Contribution Margin Income Statement and a per unit Contribution Margin Statement for the Month of August

  • Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...

    Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order IS accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...

  • When Addams Corporation produces and sells 4,200 units, its average costs per unit are shown in...

    When Addams Corporation produces and sells 4,200 units, its average costs per unit are shown in the table below. The company's relevant range of activity is 3,000 to 7,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.60 $ 3.40 $ 1.40 $ 4.50 $ 0.65 $ 0.50 $ 0.40 $ 0.40 Required: a. If 5,200 units are sold, what is...

  • When Addams Corporation produces and sells 5,200 units, its average costs per unit are shown in...

    When Addams Corporation produces and sells 5,200 units, its average costs per unit are shown in the table below. The company's relevant range of activity is 3,000 to 7,000 units. Average Cost per Unit $5.10 $3.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales comnissions Variable administrative expense $1.40 $ 3.50 s e.6e $ 8,45 3 e.35 $8.35 Required: a. If 6,200 units are sold, what is the variable cost per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT