(Appendix 5A)Slezak Corporation Manufactures and Sells One Product

question 48

Essay

(Appendix 5A)Slezak Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 35, 000 units and sold 31, 000 units.The company's only product is sold for $264 per unit.
Required:
a.Assume the company uses super-variable costing.Compute the unit product cost for the year and prepare an income statement for the year.
b.Assume that the company uses an absorption costing system that assigns $28 of direct labor cost and $68 of fixed manufacturing overhead to each unit that is produced.Compute the unit product cost for the year and prepare an income statement for the year.

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Definitions:

Distribution

The process of making a product or service available to the consumer or business user that needs it.

Furosemide

A medication commonly used to treat fluid build-up due to heart failure, liver scarring, or kidney disease by increasing urine production.

Generic Name

The official, non-commercial name of a drug, as opposed to its branded trade name.

Opioid Pain Medication

Drugs derived from opium or synthetic analogs used to treat moderate to severe pain by acting on the nervous system.