7) Packer Company , which has only one product and uses FIFO, has provided the following data concerning its February operation:
Solution
Packer Company:
Calculation of Unit Product Cost for February under Variable Costing :
Particulars Amount ( $ )
a. Direct Material ( Per Unit ) $ 19
b. Direct Labor ( Per Unit ) $ 16
c. Variable MOH ( Per Unit ) $ 11
Total Variable Cost Per Unit of Product ( a + b + c ) $ 46 Answer
Note : Variable Selling & Admin expense - $ 1 ( Per Unit ) is not include, because it will be incurred only when the product are sold. Hence to Calculate the product cost, selling and admin expenses are excluded.
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7) Packer Company - which has only one product and uses FIFO- has prov.docx
1. 7) Packer Company , which has only one product and uses FIFO, has provided the following data
concerning its February operation:
Solution
Packer Company:
Calculation of Unit Product Cost for February under Variable Costing :
Particulars Amount ( $ )
a. Direct Material ( Per Unit ) $ 19
b. Direct Labor ( Per Unit ) $ 16
c. Variable MOH ( Per Unit ) $ 11
Total Variable Cost Per Unit of Product ( a + b + c ) $ 46 Answer
Note : Variable Selling & Admin expense - $ 1 ( Per Unit ) is not include, because it will be
incurred only when the product are sold. Hence to Calculate the product cost, selling and admin
expenses are excluded.
