Lukin Corporation reports the following first year production cost information.
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.
a. $41 DL + $15 DM + ($9,300,000/62,000) VOH = $206 per unit under variable costing
b. $206 + ($4,340,000/62,000) FOH = $276 per unit under absorption costing
c. (62,000 units - 59,000 units) × $206 per unit = $618,000 ending inventory under variable costing
d. (62,000 units - 59,000 units) × $276 per unit = $828,000 ending inventory under absorption costing
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