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 € |
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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