Question 1.3 (Total: 15 marks) Springer Energy Inc. produces food products for people active in...
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Accounting
Question 1.3 (Total: 15 marks)
Springer Energy Inc. produces food products for people active in sports. The following budgeted volume and costs has been provided for one of their post-workout beverages:
Budgeted production
65,000 units
Selling price
$4.00 per unit
Direct material costs
$1.30 per unit
Direct labour costs
$0.20 per unit
Fixed manufacturing costs
$19,500
Variable manufacturing costs
$0.25 per unit
Variable administrative costs
$0.01 per unit
Fixed administrative costs
$3,900
Required
What is the inventoriable cost per drink under each of the following methods?
absorption costing
variable costing
throughput costing
Answer & Explanation
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