3 production equipment and buiaings Production and cost data

3 production equipment and buiaings Production and cost data for the first two years of operatons are: 21,000 21,000 16,000 26,000 50 Units sold Required 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2 3 Reconcile the absorption costing and the variable costing net operating income figures for each year Pyint Complete this question by entering your answers in the tabs below what is the unit product cost for both years?

Solution

1. Unit product cost - Variable costing

2.

3.

	Years 1 & 2
Direct materials	10
Direct labor	10
Variable manufacturing overhead	3
Variable costing unit product cost $	23