Home Base, Inc Assume That Productions Costs Have Remained the Same Since the Beginning

question 29

Essay

Home Base, Inc.reports the following production cost information:
$\begin{array}{ll}\text { Beginning inventory } & 10,000 \text { units } \\\text { Units produced } & 97,000 \text { units } \\\text { Units sold } & 92,000 \text { units } \\\text { Direct labor } & \$ 17 \text { per unit } \\\text { Direct materials } & \$ 34 \text { per unit } \\\text { Variable overhead } & \$ 2,522,000 \text { in total } \\\text { Fixed overhead } & \$ 1,940,000 \text { in tota } \\\text { Operating costs } & \$ 2,000,000 \text { in total }\end{array}$ Assume that productions costs have remained the same since the previous period and all units are sold for $137.00 per unit.
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine net income using variable costing.
d.Determine net income using absorption costing.

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