Exercise 2) Elmer's Electronics has the following information for the first three years of business: 2019 10,000 2020 11,000 Units sold Units produced Fixed production costs Variable production costs per unit Selling price per unit Fixed selling & administrative expense 2021 12,000 8,000 S600,000 S 100 $ 20 S200,000 25,000 $600,000 $ 100 $ 200 $200,000 3,000 S600,000 S 100 $ 210 $200,000 Calculate income under both full costing and variable costing. What is the cost of ending inventory under full costing and under variable costing (assume FIFO)?

Exercise 2) Elmer's Electronics has the following information for the first three years of business: 2019 10,000 2020 11,000 Units sold Units produced Fixed production costs Variable production costs per unit Selling price per unit Fixed selling & administrative expense 2021 12,000 8,000 S600,000 S 100 $ 20 S200,000 25,000 $600,000 $ 100 $ 200 $200,000 3,000 S600,000 S 100 $ 210 $200,000 Calculate income under both full costing and variable costing. What is the cost of ending inventory under full costing and under variable costing (assume FIFO)?

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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