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Q2. Dubloo has incurred the following costs to make 1 unit during the month of December....

Q2. Dubloo has incurred the following costs to make 1 unit during the month of December. Rials Materials 5 Direct labor 5 Variable manufacturing overhead 15 Variable selling and administrative costs 22 Fixed manufacturing overhead 10 Fixed selling and administrative costs 10 Dubloo’s December 1st inventory consisted of 25,000 units valued at RIALS 875,000 using absorption costing. Total fixed costs and variable costs per unit have not changed during the past few months. In December, Dubloo manufactured 100,000 units and sold 115,000 units at RIALS 90 per unit.

REQUIRED:

1. Using absorption costing, calculate the following.

a. Dubloo’s December manufacturing cost per unit.

b. Dubloo’s December 30 inventory value. c. Dubloo’s December net income.

2. Using variable costing, calculate the following.

a. Dubloo’s December manufacturing cost per unit.

b. Dubloo’s December 30 inventory value.

c. Dubloo’s December net income.

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