Excerpt from Areojet Corporation:
Per Unit Per Month Selling price $200,000
Direct materials 40,000
Direct labor 10,000
Variable manufacturing overhead 2,000
Fixed manufacturing overhead $140,000
Variable selling and administrative expenses 20,000
Fixed selling and administrative expenses 40,000

January February March Beginning inventory 0 0 3
Units produced 4 5 2
Units sold 4 2 5
Ending inventory 0 3 0

What is the unit product cost for the month of February, using the variable costing method?

Unit Product cost for the m/o February is $ 52000  

Explanation:

Given data

Variable Costing is costing method which assign only variable manufacturing cost to the inventory. All other expenses or cost are treated as period cost and are excluded from the cost of production.

Direct Material = 40000

Direct labor = 10000

Variable Manufacturing Overhead = 2000

Fixed Manufacturing overhead = 140000

Variable Selling & Administrative Expenses = 20000

Fixed Selling & Administrative Expenses = 40000

Unit Product Cost  by Variable costing methods can be calculated as follows:

Unit Product Cost for the M/O February = (Direct Material + Direct Labor + Variable manufacturing overhead )

Unit Product cost for the m/o February= (40000 + 10000 + 2000)

Unit Product cost for the m/o February =  52000

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer; institution;