Transcribed Image Text: EXERCISE 5. Noura designs and sells hand-made jewelry. She incurred the following unit costs to produce 60,000 items. Direct materials AEDS.00 Direct

Academic Writing accounting, business-managerial-accounting Transcribed Image Text: EXERCISE 5. Noura designs and sells hand-made jewelry. She incurred the following unit costs to produce 60,000 items. Direct materials AEDS.00 Direct

accounting, business-managerial-accounting

Transcribed Image Text: EXERCISE 5. Noura designs and sells hand-made jewelry. She incurred the following unit costs to produce 60,000 items. Direct materials AEDS.00 Direct

Transcribed Image Text: EXERCISE 5. Noura designs and sells hand-made jewelry. She incurred the following unit
costs to produce 60,000 items.
Direct materials
AEDS.00
Direct labor
AED1.80
Variable overhead
AEDO.70
Fixed overhead
AED4.20
Noura began the year with no inventory. During the year she sold 45,000 items for AED18
each, incurring AED0.50 in selling costs per item plus AED5,000 in advertising and other
selling expenses.
a. Calculate the unit product cost and prepare an income statement using the variable costing
method.
b. During the year she sold 45,000 items for AED18 each, incurring AEDO.50 in selling costs
per item plus AED5,000 in advertising and other selling expenses. Under absorption costing,
what is Noura’s ending Finished Goods Inventory balance?

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