Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $489 each. During the first month of operations, the following activity was recorded: 4,770 3,550 a. Absorption costing b. Variable costing $ 192 13 $ $438,840 10% of sales Unit Product Cost $333,900 Required: 1. Compute the unit product cost under each of the following costing method.

Principles of Accounting Volume 2
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Chapter2: Building Blocks Of Managerial Accounting
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Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The
division's monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct materials
Variable manufacturing overhead
Fixed manufacturing overhead costs (total)
Selling and administrative costs:
Variable
Fixed (total)
Units produced
Units sold
Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore,
production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell
for $489 each.
During the first month of operations, the following activity was recorded:
a. Absorption costing
b. Variable costing
4,770
3,550
$ 192
13
$
$438,840
Cost of goods sold:
10% of sales
Required:
1. Compute the unit product cost under each of the following costing method.
Unit Product
Cost
$333,900
2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is
required.)
Transcribed Image Text:Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below: Manufacturing costs: Variable costs per unit: Direct materials Variable manufacturing overhead Fixed manufacturing overhead costs (total) Selling and administrative costs: Variable Fixed (total) Units produced Units sold Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $489 each. During the first month of operations, the following activity was recorded: a. Absorption costing b. Variable costing 4,770 3,550 $ 192 13 $ $438,840 Cost of goods sold: 10% of sales Required: 1. Compute the unit product cost under each of the following costing method. Unit Product Cost $333,900 2. Prepare an income statement for the month using absorption costing. (Do not leave any empty spaces; input a 0 wherever it is required.)
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ISBN:
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