Inventory valuation under absorption costing and variable costing At the end of the first year of operations, 19,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $21 Direct labor 25 Fixed factory overhead 17 Variable factory overhead 13 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. a. Cost of the finished goods inventory under the absorption costing: b. Cost of the finished goods inventory under the variable costing:
Inventory valuation under absorption costing and variable costing At the end of the first year of operations, 19,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $21 Direct labor 25 Fixed factory overhead 17 Variable factory overhead 13 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. a. Cost of the finished goods inventory under the absorption costing: b. Cost of the finished goods inventory under the variable costing:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At the end of the first year of operations, 19,400 units remained in the finished goods inventory. The unit
| Direct materials | $21 | |
| Direct labor | 25 | |
| Fixed factory |
17 | |
| Variable factory overhead | 13 |
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
Transcribed Image Text:O Chapter 21 Homework
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Inventory valuation under absorption costing and variable costing
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At the end of the first year of operations, the number of units and the unit manufacturing costs were as follows:
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DATA
6 Units in the finished goods inventory
19,400
$21
7
Direct materials
8
Direct labor
25
9 Fixed factory overhead
10 Variable factory overhead
17
13
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Using formulas and cell references, perform the required analysis, and input your answers into the Cost of Finished Goods column. Transfer the numeric
12 results for the green entry cells (C15:C16) into the appropriate fields in CNOWV2 for grading.
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Cost of Finished Goods
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15 a. Absorption costing
16 b. Variable costing
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Transcribed Image Text:O Chapter 21 Homework
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Chapter 21 Homework
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1. EX.21.08.ALGO
Inventory valuation under absorption costing and variable costing
At the end of the first year of operations, 19,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
2. PR.21.01A.BLANKSHEET.A...
Direct materials
$21
3. EX.21-01.EXCEL.ALGO
Direct labor
25
Fixed factory overhead
17
4. EX.21-02.EXCEL.ALGO
Variable factory overhead
13
5. EX.21-03.EXCEL.ALGO
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.
6. BE.21.01
7. BE.21.01.ALGO
Open spreadsheet
8. BE.21.02
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
9. BE.21.03
a. Cost of the finished goods inventory under the absorption costing:
b. Cost of the finished goods inventory under the variable costing:
10. BE.21.04.ALGO
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