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Ch_8_Absorption_Costing_Illustration_-_4_Years

Ch_8_Absorption_Costing_Illustration_-_4_Years - Direct...

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Direct Materials per unit $3 Production Volume Direct Labor per unit $5 4 5 6 Variable MOH per unit $2 Total Variable Cost per unit $10 $10 $10 Fixed MOH (total) $60 Fixed Cost per unit $15 $12 $10 Total Product Cost per unit $25 $22 $20 25 22 20 Year Units Sold 1 4 4 2 6 6 3 6 4 4 4 6 Units Produced
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Year One Cost of Goods Sold: $100 Ending F.G. Inventory: $- Direct Materials per unit $3 Production Volume Direct Labor per unit $5 4 5 6 Variable MOH per unit $2 Total Variable Cost per unit $10 $10 $10 Fixed MOH (total) $60 Fixed Cost per unit $15 $12 $10 Total Product Cost per unit $25 $22 $20 Units Produced 4 Units Sold 4 Beginning FG Inv. $- Cost of Goods Sold Finished Goods Inventory (FIFO) 25 25 25 22 20 25 25
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Year Two Cost of Goods Sold: $120 Ending F.G. Inventory: $- Direct Materials per unit $3 Production Volume Direct Labor per unit $5 4 5 6 Variable MOH per unit $2 Total Variable Cost per unit $10 $10 $10 Fixed MOH (total) $60 Fixed Cost per unit $15 $12 $10 Total Product Cost per unit $25 $22 $20 Units Produced 6 Units Sold 6 Beginning FG Inv. $- Cost of Goods Sold Finished Goods Inventory (FIFO) 20 20 25 22 20 20 20 20 20
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