The Dean Company produces and sells a single product. The following data refer t

The Dean Company produces and sells a single product. The
following data refer to the year just completed:

Selling price $450

Units in beginning Inventory 0
Units produced 25,000
Units sold 22,000

Variable costs per unit:
Direct materials $ 200
Direct labor $ 50
Variable manufacturing overhead $ 30
Variable selling and admin $ 15

Fixed Costs:
Fixed manufacturing overhead $ 275,000
Fixed selling and admin $ 230,000

Assume that direct labor is a variable cost.
Required:
a. Compute the cost of a single unit of product under both the
absorption costing and variable costing approaches.
b. Prepare an income statement for the year using absorption
costing.
c. Prepare an income statement for the year using variable
costing.

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