Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
$$\begin{array} { l l }
\text { Variable manufacturing costs } & \$ 19 \text { per unit } \
\text { Variable marketing costs } & \$ 1 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \
\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \
\text { Ending inventories: } & \
\text { Direct materials } & - 0 - \
\text { WIP } & - 0 - \
\text { Finished goods } & 750 \text { units }
\end{array}$$
-Absorption costing is required for all of the following EXCEPT:

Question

Answer the following questions using the information below:
Healesville Animates produces and sells a luxury animal pillow for $40.00 per unit.In the first month of operation,3000 units were produced and 2250 units were sold.Actual fixed costs are the same as the amount budgeted for the month.Other information for the month includes:
 $$\begin{array} { l l } 
\text { Variable manufacturing costs } & \$ 19 \text { per unit } \
\text { Variable marketing costs } & \$ 1 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 30000 \text { per month } \
\text { Administrative expenses, all fixed } & \$ 6000 \text { per month } \
\text { Ending inventories: } & \
\text { Direct materials } & - 0 - \
\text { WIP } & - 0 - \
\text { Finished goods } & 750 \text { units }
\end{array}$$
-Absorption costing is required for all of the following EXCEPT:

Quizplus · Accepted Answer

Absorption costing is a method used for financial and tax reporting purposes under generally accepted accounting principles (GAAP) and for external reporting to shareholders. It is not specifically required for determining a competitive selling price, as pricing decisions can also consider variable costs and market conditions.

Answer the Following Questions Using the Information Below: Healesville Animates

Answer the Following Questions Using the Information Below:
Healesville Animates