R(9) 8-27-Solution - Recitation Problem R(9): 827 Solutions...

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Recitation Problem R(9): 8-27 Solutions PROBLEM 8-27 (35 MINUTES) 1. Total cost: Direct material (10,000 units x $36)…………. .. $ 360,000 Direct labor………………………………………. . 135,000 Variable manufacturing overhead……………. 195,000 Fixed manufacturing overhead………………. . 660,000 Variable selling and administrative costs (9,600 units x $24)…………………………… 230,400 Fixed selling and administrative costs……… 354,000 Total……………………………………………. $1,934,400 2. The cost of the year-end inventory of 400 units (10,000 units produced – 9,600 units sold) is computed as follows: Absorption Costing Variable Costing Throughput Costing Direct material…………………………. . $ 360,000 $360,000 $360,000 Direct labor……………………………… 135,000 135,000 Variable manufacturing overhead…. . 195,000 195,000 Fixed manufacturing overhead……… 660,000 ________ ________ Total product cost…………………
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This note was uploaded on 02/06/2012 for the course MGMT 201 taught by Professor Rowe during the Fall '08 term at Purdue University-West Lafayette.

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R(9) 8-27-Solution - Recitation Problem R(9): 827 Solutions...

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