Question

Qadir Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Answer 1

a. Under variable costing, the unit product cost for the month is $51 ($24 + $27).

b. The preparation of the contribution-format Income Statement for the month under variable costing is as follows:

Sales revenue             $483,600 (5,200 x $93)

Cost of goods sold       265,200 (5,200 x $51)

Contribution margin $218,400

c. The absorption costing net operating income for the month is still $218,400 since the fixed cost is not given.

Data and Calculations:

Selling price = $93

Units in beginning inventory = 0

Units produced = 5,400

Units sold = 5,200

Units in ending inventory = 200 (5,400 - 5,200)

Variable costs per unit:

Direct materials = $24

Direct labor = $27

Learn more about absorption and variable costing systems here: brainly.com/question/25056982