Borques Company produces and sells wooden pallets thatare used for moving and stacking materials. The operatingcosts for the past year were as follows:Variable costs per unit:Direct materialsDirect labourVariable overheadVariable sellingFixed costs per year:Fixed overheadSelling and administrative1During the year, Borques produced 200 000 woodenpallets and sold 204 300 at $9 each. Borques had 8200pallets in beginning finished goods inventory; costs havenot changed from last year to this year. An actual costingsystem is used for product costing.Required:23$2.85$1.92$1.60$0.9045$180 000$96 000What is the per-unit inventory cost that is acceptablefor reporting on Borques' balance sheet at the end ofthe year? How many units are in ending inventory?What is the total cost of ending inventory?Calculate absorption-costing operating income.What would the per-unit inventory cost be undervariable costing? Does this differ from the unit costcomputed in requirement 1? Why?Calculate variable-costing operating income.Suppose that Borques Company had sold 196 700pallets during the year. What would absorptioncosting operating income have been? Variable-costingoperating income?

an income statement is a financial statement that presents a company's revenues, expenses, and net…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows: Variable costs per unit: Direct materials $2.8