Lukin Corporation reports the following first year production cost information:
$$\begin{array} { l l }
\text { Units produced } & 62,000 \text { units } \
\text { Units sold } & 59,000 \text { units } \
\text { Sales price } & \$ 350 \text { per unit } \
\text { Direct labor } & \$ 41 \text { per unit } \
\text { Direct materials } & \$ 15 \mathrm { per } \text { unit } \
\text { Variable overhead } & \$ 9,300,000 \mathrm { in } \text { total } \
\text { Fixed overhead } & \$ 4,340,000 \text { in total } \
\text { Operating expenses } & \$ 1,000,000
\end{array}$$
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine the net income using variable costing.
d.Determine the net income using absorption costing.

Question

Lukin Corporation reports the following first year production cost information:
 $$\begin{array} { l l } 
\text { Units produced } & 62,000 \text { units } \
\text { Units sold } & 59,000 \text { units } \
\text { Sales price } & \$ 350 \text { per unit } \
\text { Direct labor } & \$ 41 \text { per unit } \
\text { Direct materials } & \$ 15 \mathrm { per } \text { unit } \
\text { Variable overhead } & \$ 9,300,000 \mathrm { in } \text { total } \
\text { Fixed overhead } & \$ 4,340,000 \text { in total } \
\text { Operating expenses } & \$ 1,000,000
\end{array}$$ 
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine the net income using variable costing.
d.Determine the net income using absorption costing.

Quizplus · Accepted Answer

The Answer of Lukin Corporation reports the following first year production cost information:
 $$\begin{array} { l l } 
\text { Units produced } & 62,000 \text { units } \
\text { Units sold } & 59,000 \text { units } \
\text { Sales price } & \$ 350 \text { per unit } \
\text { Direct labor } & \$ 41 \text { per unit } \
\text { Direct materials } & \$ 15 \mathrm { per } \text { unit } \
\text { Variable overhead } & \$ 9,300,000 \mathrm { in } \text { total } \
\text { Fixed overhead } & \$ 4,340,000 \text { in total } \
\text { Operating expenses } & \$ 1,000,000
\end{array}$$ 
a.Compute production cost per unit under variable costing.
b.Compute production cost per unit under absorption costing.
c.Determine the net income using variable costing.
d.Determine the net income using absorption costing.

Lukin Corporation Reports the Following First Year Production Cost Information