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Unit product cost using variable costing

04/05/2021 Client: muhammad11 Deadline: 2 Day

Need accounting help with: Variable and Absorption Costing Unit Product Costs and Income Statement
Subject
Business Finance

Question Description
Please complete in Excel.

Problem 5-17 Variable and Absorption Costing Unit Product Costs and Income Statement

Nickelson Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations.

Variable costs per unit:

Manufacturing

$25

Direct Labor

$16

Variable manufacturing overhead

$5

Variable selling and administrative

$2

Fixed Cost per Year:

Fixed manufacturing overhead

$300,000

Fixed selling and administrative expenses

$180,000

During the first year of operations Nickelson produced 60,000 units and sold 60,000 units. During its second year of operations it produced 75,000 units and sold 50,000 units. In its third year, Nickelson produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $56 per unit.

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