Lukin Corporation Reports the Following First Year Production Cost Information

Essay

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.