Mahugh Corporation, which has only one product, has provided thefollowing data concerning its most recent month of operations:
| | |
| Selling price | | 187 |
| Units in beginninginventory | | 0 |
| Units produced | | 3,660 |
| Units sold | | 3,100 |
| Units in endinginventory | | 560 |
| Variable costs perunit: | | |
| Directmaterials | | 50 |
| Direct labor | | 55 |
| Variablemanufacturing overhead | | 17 |
| Variable selling andadministrative | | 19 |
| Fixed costs: | | |
| Fixed manufacturingoverhead | $ | 124,440 |
| Fixed selling andadministrative | $ | 9,300 |
|
Required:
a. What is the unit product cost for the monthunder variable costing? (Do not round intermediatecalculations.)
b. What is the unit product cost forthe month under absorption costing?
c. Prepare a contribution formatincome statement for the month using variable costing.
d. Prepare an income statement forthe month using absorption costing.
