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Northeastern University Operations And Supply Chain Management Assignment Help - Fresh Air Products Company


Question - Fresh Air Products Company manufactures and sells a variety of camping products. Recently the
company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for
the first month of operations are shown below:
Manufacturing Costs
Fixed Overhead $120,000
Variable overhead $3 per unit
Direct labor $12 per unit
Direct material $30 per unit
Beginning inventory 0 units
Units produced 10,000
Units sold 8,000
Selling and Administrative Costs
Fixed $200,000
Variable $4 per unit sold

The portable cooking unit sells for $110. Management is interested in the opening month's results and
has asked for an income statement.

Instructions
Assume the company uses absorption costing. Calculate the production c ...Read More

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