Castaway Company Reports the Following First Year Production Cost Information

question 130

Essay

Castaway Company reports the following first year production cost information:
$$\begin{array} { | l | l | } \hline \text { Units produced } & 53,000 \text { units } \\\hline \text { Units sold } & 51,000 \text { units } \\\hline \text { Direct labor } & \$ 8 \text { per unit } \\\hline \text { Direct materials } & \$ 4 \text { per unit } \\\hline \text { Variable overhead } & \$ 41 \text { per unit } \\\hline \text { Fixed overhead } & \$ 3,339,000 \text { in total } \\\hline\end{array}$$ 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:

Myringoplasty

Surgical repair of a hole or tear in the eardrum (tympanic membrane) to improve hearing and prevent water from entering the middle ear.

Auditory-Evoked Response

A measure of the brain's response to sound, used in hearing tests to assess auditory nerve and brainstem function.

Pure Tone Audiometry

A hearing test used to determine the threshold levels of an individual for various frequencies of sound.

Rinne Test

A hearing test that compares air conduction to bone conduction of sound, used to identify hearing loss type.