Easton Pump Company's planned production for the year just ended was 19,300 units. This production level was achieved, and 21,200 units were sold. Other data follow: Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable selling and administrative expenses Finished-goods inventory, January 1 $ 582,860 297,220 399,510 179,490 349,330 114,835 2,400 units The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Easton Pump Company's finished-goods inventory cost on December 31 under the variable-costing method? Note: Do not round intermediate calculations. 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? Note: Do not round intermediate calculations.

Easton Pump Company's planned production for the year just ended was 19,300 units. This production level was achieved, and 21,200 units were sold. Other data follow: Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable selling and administrative expenses Finished-goods inventory, January 1 $ 582,860 297,220 399,510 179,490 349,330 114,835 2,400 units The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Easton Pump Company's finished-goods inventory cost on December 31 under the variable-costing method? Note: Do not round intermediate calculations. 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? Note: Do not round intermediate calculations.

Name: Easton Pump Company's planned production for the year just ended was
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Description: Easton Pump Company's planned production for the year just ended was 19,300 units. This production level was achieved, and 21,200units were sold. Other data follow:Direct material usedDirect labor incurredFixed manufacturing overheadVariable manufac

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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