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Question
Lukin Corporation reports the following first year production cost information:Units produced 62,000 units
Units sold 59,000 units
Sales price $350 per unit
Direct labor $41 per unit
Direct materials $15 per unit
Variable overhead $9,300,000 in total
Fixed overhead $4,340,000 in total
Operating expenses $1,000,000
a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the net income using variable costing.
d. Determine the net income using absorption costing.
Answer
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