Zurgot Inc. has just organized a new division to manufacture and sell speclally designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct materials
Variable manufacturing overhead
Fixed manufacturing overhead costs total
Selling and adninistrative costs:
Variable
fixed total
$
$
$
Fixed total
of sales
Zurgot regards all of its workers as fulltime employees, and the company has a longstanding nolayoff policy. Furthermore. production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overihead. The tables sell. for $ each.
During the first month of operations, the following activity was recorded:
tableUnits produced,Units sold,
Required:
Compute the unit product cost under each of the following costing method.
tabletableUnit ProductCastaAbsprpbion costing,bVariable costing,
Prepare an income statement for the month using absorption costing. Do not leave any empty spaces; Input a wherever It is required.
