Home Base, Inc ACompute Production Cost Per Unit Under Variable Costing

question 50

Essay

Home Base, Inc.reports the following production cost information:
$\begin{array}{ll}\text { Units produced } & 97,000 \text { units } \\\text { Units sold } & 92,000 \text { units } \\\text { Direct labor } & \$ 17 \text { per unit } \\\text { Direct materials } & \$ 34 \text { per unit } \\\text { Variable overhead } & \$ 2,522,000 \text { in total } \\\text { Fixed overhead } & \$ 1,940,000 \text { in total }\end{array}$ a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine the cost of ending inventory using variable costing.
d.Determine the cost of ending inventory using absorption costing.

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Definitions:

Journal Entries

A record of financial transactions in accounting that includes details like the date of the transaction, amounts involved, accounts affected, and a brief description.

Incurred Expense

An expense that a company has recognized on its books, representing a cost that has been encountered in the operation of the business.

Wages Paid

This refers to the total amount of remuneration paid by an employer to an employee, including salaries, commissions, and bonuses, for work performed during a specific period.