Silver Rex,Inc Requirements:
A)Compute Silver Rex's Unit Product Cost Under Absorption Costing

question 75

Essay

Silver Rex,Inc.has provided the following data for the year:
$$\begin{array} { | l | r |l| } \hline \text { Direct materials } & \$ 10& \text { per unit } \\\hline \text { Direct labor } & \$ 15& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 20 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 25,000 &\text { per year } \\\hline \text { Fixed selling and administrative costs } & \$ 15,000 &\text { per year } \\\hline \text { Sales price } & \$ 75 &\text { per unit } \\\hline \text { Beginning Finished Goods Inventory } & 500& \text { units } \\\hline \text { Units produced } & 5,000& \text { units } \\\hline \text { Units sold } & 4,500& \text { units } \\\hline\end{array}$$ Requirements:
a)Compute Silver Rex's unit product cost under absorption costing and variable costing.
b)Prepare income statements for Silver Rex using absorption costing and variable costing.
c)Calculate the balance in Finished Goods Inventory using absorption costing and variable costing.
Assume that the production level,costs,and sales prices were the same in the previous year.

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Definitions:

Process Innovation

The development and implementation of new or improved production or delivery methods, enhancing efficiency, quality, or performance.

Implementation And Diffusion

The process of putting strategies, plans, or policies into effect and the subsequent spread of these innovations within or across organizations.

Innovation Process

A series of steps that include the generation, development, and implementation of new ideas or technologies.

Societal Problem

A challenge or issue that affects a significant number of people within a society, requiring collective action for resolution.