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USE ABSORPTION METHOD AND DIRECT APPROACH The following information is considered for a manufacturing company For...

USE ABSORPTION METHOD AND DIRECT APPROACH

The following information is considered for a manufacturing company

For 5000 units of product, the following were incurred:

2000 units of raw material at $100 each

3000 hh at $ 20 each

$ 100.000 in electric power

linear depreciation for $ 50.000 each period

lease machinery for $ 50.000

4000 units were sold during the period at a sale price of $ 400. It asks:

a) determine the total and unit production cost according to both approaches

b) determine the result of the period according to both approaches

c) determine the inventory cost according to both approaches

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Expert Solution

ekkarill92 answered 1 year ago
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