Answer:
Hi, your question is missing the selling price per unit, however important principles and calculations are explained below:
Variable Cost Product Costs = Only Variable Manufacturing Costs
Variable Cost Period Costs = Fixed Manufacturing Costs + All Non Manufacturing Costs.
Product Cost per unit = $47 + $44 + $ 6
= $97.00
<u>Calculation of net operating income for the month under variable costing</u>
Sales ($pp × 6,500) xxxxx
Less Costs of Sales
Opening Stock of Finished Goods 0 0
Add Cost of Goods Manufactured ($97.00×6,700) $649,900
Less Closing Stock of Finished Goods ($97.00×200) ($19,400) $630,500
Contribution xxxxx
Less Expenses
Fixed manufacturing overhead ($52,500
)
Fixed selling and administrative expenses ($3,800)
Variable selling and administrative expense ($11×6,700)
Net Income/(Loss) xxxxx
Explanation:
