138. Home Base, Inc. reports the following production cost information: Beginning inventory 10,000 units Units produced 97,000 units Units sold 92,000 units Direct...





138. Home Base, Inc. reports the following production cost information:







































Beginning inventory




10,000 units




Units produced




97,000 units




Units sold




92,000 units




Direct labor




$17 per unit




Direct materials




$34 per unit




Variable overhead




$2,522,000 in total




Fixed overhead




$1,940,000 in total




Operating costs




$2,000,000 in total






Assume that productions costs have remained the same since the previous period and all units are sold for $137.00 per unit.




a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine net income using variable costing.
d. Determine net income using absorption costing.







139. Home Base, Inc. reports the following production cost information:































Units produced




97,000 units




Units sold




92,000 units




Direct labor




$17 per unit




Direct materials




$34 per unit




Variable overhead




$2,522,000 in total




Fixed overhead




$1,940,000 in total





a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the cost of ending inventory using variable costing.
d. Determine the cost of ending inventory using absorption costing.







140. Lukin Corporation reports the following first year production cost information.































Units produced




62,000 units




Units sold




59,000 units




Direct labor




$41 per unit




Direct materials




$15 per unit




Variable overhead




$9,300,000 in total




Fixed overhead




$4,340,000 in total





a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the cost of ending inventory using variable costing.
d. Determine the cost of ending inventory using absorption costing.















May 15, 2022
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