SPSHT1_06-1 - COST AND MANAGEMENT ACCOUNTING 2 SPREADSHEET...

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COST AND MANAGEMENT ACCOUNTING 2 SPREADSHEET ASSIGNMENT #1: Variable vs. Absorption Costing Given below are the sales, production, and cost data for Burton Co. for the years ended December 31, 2002through 2005 2002 2003 2004 2005 Sales in units 12,000 16,000 18,000 14,000 Production in units 17,000 18,000 12,000 13,000 Beginning inventory in units 0 5,000 7,000 1,000 Direct material cost per unit $5 $6 $7 $7 Direct Labour cost per unit $6 $7 $9 $10 Variable overhead cost per unit $3 $3 $4 $5 Fixed Overhead $90,000 $105,000 $120,000 $120,000 Variable selling and administrative exp. per unit $4 $5 $6 $6 Fixed selling and admin. $50,000 $60,000 $80,000 $90,000 Selling price per unit $40 $45 $50 $52 Denominator level in units 15,000 15,000 15,000 15,000 Other Information Assume FIFO for inventory flows. Assume that the unit costs for the beginning inventory in 2001 i.e, the production cost relating to 2002) were the same as the production costs in 2003 (This would not be the normal situation; production costs in 2003would
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This note was uploaded on 03/04/2012 for the course ACCT 2460 taught by Professor Farrar during the Winter '12 term at Conestoga.

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