Triton Industries Reports the Following Information Regarding Its Production Cost

question 47

Essay

Triton Industries reports the following information regarding its production cost. $$\begin{array} { l l } \text { Units produced } & 77,000 \text { units } \\\text { Direct labor } & \$ 27 \text { per unit } \\\text { Direct materials } & \$ 12 \text { per unit } \\\text { Variable overhead } & \$ 2,541,000 \text { in total } \\\text { Fixed overhead } & \$ 3,311,000 \text { in total }\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth on paper.

Accounting Loss

The situation where a company's total expenses exceed its revenues, leading to a negative income figure in the financial statements.

Maturity Values

The amount that will be paid to the holder of a financial instrument at the time of its maturity, including principal and any accrued interest.