The total period cost for the month under the absorption costing approach is :-
Total Period Cost = Fixed Selling and administrative Expenses + Total Variable Selling and administrative Expenses (Units sold * Variable Selling and administrative Expense per unit) + Fixed Manufacturing Overhead
Absorption costing, often known as "full absorption costing" or "full costing," is an accounting technique created to record all expense associated with producing a certain good. In order to submit taxes and publish other formal records, absorption costing is required. Regardless of whether a product is sold, all manufacturing costs are divided among all goods. In other words, all costs incurred by the business are covered by its products.
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