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Insert Table Chart Text Shape Medla Cum nL The following costs were incurred in

ID: 2600597 • Letter: I

Question

Insert Table Chart Text Shape Medla Cum nL The following costs were incurred in July: S35,000 13,000 Direct Materials Direct Labor Manufacturing Overhead Selling Expenses Administrative Expenses 15,000 14,000 30,000 Product costs are: Period costs are: Shun Corporation Unit cost under variable costing Fixed manu Fixed silling and administrative costs for the year $180,000 Units produced and sold S5.20 per unit $260,000 facturing overhead cost for the year 400,000 What is Shun's unit produet cost under absorption costing? What is Shun's unit product cost under variable costing?

Explanation / Answer

1 Product costs = 35000+13000+15000= 63000 Period costs = 14000+30000 = 44000 2 Unit product cost under absorption costing = 5.2+(260000/400000)= 5.85