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Blackbird,Incorporated Reports the Following Information Regarding Its Production Cost ACompute Production Cost Per Unit Under Variable Costing

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Essay

Blackbird,Incorporated reports the following information regarding its production cost:
 Units produced 39,000 units  Direct labor $13 per unit  Direct materials $17 per unit  Variable overhead $7,800,000 in total  Fixed overhead $9,750,000 in total \begin{array}{ll}\text { Units produced } & 39,000 \text { units } \\\text { Direct labor } & \$ 13 \text { per unit } \\\text { Direct materials } & \$ 17 \text { per unit } \\\text { Variable overhead } & \$ 7,800,000 \text { in total } \\\text { Fixed overhead } & \$ 9,750,000 \text { in total }\end{array}

a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.


Definitions:

Stock Investments Account

An account used to record the purchases and sales of equity securities, such as shares of stock, that a company holds as investments.

Annually

Occurring once every year or relating to a period of one year.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Consolidated Financial Statements

Financial statements that aggregate the financial information of a parent company and its subsidiaries as if they were a single entity.

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