Question

Harvest​, Inc. has collected the following data for November ​(there are no beginning​ inventories):

Units produced and sold	700 units
Sales price	$325	per unit
Direct materials	42	per unit
Direct labor	64	per unit
Variable manufacturing overhead	24	per unit
Fixed manufacturing overhead	10,850	per month
Variable selling and administrative costs	10	per unit
Fixed selling and administrative costs	4,750	per month

Requirement 1. Using absorption​ costing, calculate the unit product cost. ​(Round your final answer to the nearest​ cent.

	Absorption
	costing
Unit product cost

Requirement 2. Prepare an income statement using the traditional format.

Harvest, Inc.
Income Statement (Absorption Costing)
For the Month Ended November 30
Operating Income

and,

Michael Street Barber Shop pays $ 5 per month for water for the first 15,000 gallons and $2.75 per thousand gallons above 15,000gallons. Calculate the total water cost when the barber shop uses 14,000 ​gallons, 18,000 ​gallons, and 20,000 gallons. ​(Do not round interim calculations. Round your final answers to the nearest​ cent.)

Usage	Total Water Cost
14,000 gallons
18,000 gallons
20,000 gallons

Answer 1