Question

Venus Corporation incurred fixed manufacturing costs of 27,000 € during 2019. Other information for 2019 includes:...

Venus Corporation incurred fixed manufacturing costs of 27,000 € during 2019. Other information for 2019 includes:

The budgeted denominator level is 2,400 units.
Units produced total 2,700 units.
Units sold total 1,900 units.
Variable cost per unit is 6 €
Beginning inventory is zero.

Under normal absorption costing, total manufacturing costs expensed on the income statement (excluding adjustments for variances) total ________.

21,375 €

32,775 €

30,400 €

30,375 €

Homework Answers

Answer #1
Calculation of Total Manufacturing Costs ( Amount in € ) Under Normal Absorption Costing
Units Rate Amount
Variable Cost 2700 6 16200
Fixed M Cost 27000
Total Manufacturing Cost 43200
Units produced 2700
Cost of Absorption / unit 16
Less : Closing stock 800 12800
Total Manufacturing Cost expensed ( excluding adjustments for variances ) 30400
Note : Since out of 2700 Units produced, only 1900 units sold.
Hence, 800 Units remain unsold
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