Question 2.2.( TCO B) The Nebraska Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below. Percentage Completed Units Materials Conversion Work in process, June 1 140,000 65 % 45 % Work in process, Jun 30 120,000 75 % 65 % The department started 580,000 units into production during the month and transferred 600,000 completed units to the next department. Question 3.3.( TCO C) A tile manufacturer has supplied the following data. Boxes of tile produced and sold 625,000 Sales revenue $ 2,975,000 Variable manufacturing expense $ 1,720,000 Fixed manufacturing expense $ 790,000 Variable selling and admin expense $ 152,000 Fixed selling and admin expense $ 133,000 Net operating income $ 180,000 Question 4.4.( TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed. Selling price $ 450
Units in beginning inventory 0 Units produced 25,000 Units sold 22,000
Variable costs per unit: Direct materials $ 150 Direct labor $ 75 Variable manufacturing overhead $ 25 Variable selling and admin $ 15
Fixed costs: Fixed manufacturing overhead $ 275,000 Fixed selling and admin $ 200,000 Required: Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.