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Question
Castaway Company reports the following first year production cost information:Units produced 53,000 units
Units sold 51,000 units
Direct labor $8 per unit
Direct materials $4 per unit
Variable overhead $2,173,000 in total
Fixed overhead $3,339,000 in total
a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the cost of ending inventory using variable costing.
d. Determine the cost of ending inventory using absorption costing.
Answer
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Variable manufacturing overhead
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