Question

Blossom Corporation has provided the following data concerning its most recent month of operations. Show your work for full credits. Selling price $ 121 Units in beginning inventory 0 Units produced 7,000 Units sold 6,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 38 Direct labor $ 53 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 70,000 Fixed selling and administrative expense $ 28,000 a. What is the unit product cost for the month under variable costing

Answer 1

Answer:

Unitary production cost= $94

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $ 38

Direct labor $ 53

Variable manufacturing overhead $ 3

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead). Variable selling and administrative expense is a period cost.

Unitary production cost= 38 + 53 + 3

Unitary production cost= $94