Question

Kawasaki Company incurred the following unit costs in manufacturing digital cameras: Direct Materials $14 Indirect Materials (variable) $4 Direct Labor $8 Indirect Labor (variable) $6 Other Variable Factory Overhead $10 Fixed Factory Overhead $28 Variable Selling Expenses $20 Fixed Selling Expenses $14 During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using variable costing

Answer 1

Answer:

Unitary variable cost= $42

Explanation:

Giving the following information:

Direct Materials $14

Indirect Materials (variable) $4

Direct Labor $8

Indirect Labor (variable) $6

Other Variable Factory Overhead $10

During the period, the company produced and sold 1,000 units.

Under the variable cost method, the product cost is calculated using direct material, direct labor, and variable overhead:

Unitary variable cost= 14 + 8 + (4 + 6 + 10)= $42