Lukin-Evers Corporation Reports the Following First Year Production Cost Information

question 127

Essay

Lukin-Evers Corporation reports the following first year production cost information. $$\begin{array} { l l } \text { Units produced } & 62,000 \text { units } \\\text { Units sold } & 59,000 \text { units } \\\text { Sales price } & \$ 350 \text { per unit } \\\text { Direct labor } & \$ 41 \text { per unit } \\\text { Direct materials } & \$ 15 \text { per unit } \\\text { Variable overhead } & \$ 9,300,000 \text { in total } \\\text { Fixed overhead } & \$ 4,340,000 \text { in total } \\\text { Operating expenses } & \$ 1,000,000\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.
(c.) Determine the net income using variable costing.
(d.) Determine the net income using absorption costing.