Exam 7: Absorption, Variable and Throughput Costing

PFA Ltd uses a throughput costing system and reported the following information for its first month of operations: Units produced…………………………………..140 Units sold………………………………………..120 Material cost per unit produced……………….$3.50 Conversion cost per unit produced……………$6.50 Fixed period costs per unit produced………….$6.00 Variable period costs per unit produced………$4.00 Selling price per unit…………………………$25.00 PFA's total throughput product cost incurred was

During its first year of operations, Kima Ltd. experienced the following: The amount of fixed costs deducted from revenues under the absorption costing approach would be