Lukin Corporation Reports the Following First Year Production Cost Information

question 70

Essay

Lukin Corporation reports the following first year production cost information.
$$\begin{array} { | l | l | } \hline \text { Units produced } & 62,000 \text { units } \\\hline \text { Units sold } & 59,000 \text { units } \\\hline \text { Direct labor } & \$ 41 \text { per unit } \\\hline \text { Direct materials } & \$ 15 \text { per unit } \\\hline \text { Variable overhead } & \$ 150 \text { per unit } \\\hline \text { Fixed overhead } & \$ 4,340,000 \text { in total } \\\hline\end{array}$$ a. Compute production cost per unit under variable costing.
b. Compute production cost per unit under absorption costing.
c. Determine the cost of ending inventory using variable costing.
d. Determine the cost of ending inventory using absorption costing.

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Definitions:

Change Its Shape

The process of altering the form or structure of an object.

Specified Sizes

These are the dimensions provided on a technical drawing, indicating the precise measurements that components should be manufactured or cut to.

Gage Number

A numerical system that specifies the thickness of sheet metal or wire, the higher the number, the thinner the material.

Material Size

Refers to the physical dimensions of a raw material or component before it is processed or machined into its final form.