Question 1 Smart Technology Company had the following information during the previous year for one of its product lines: Sales Price per Unit $6000 Units in Beginning Inventory 0 Units Started During the Year 55,000 Units Sold 52,000 Variable Costs per Unit: Direct Materials $145 Direct Labor $200 Variable Overhead Costs $75 Fixed Costs: Fixed Overhead per Unit $50 General and Administrative $1,250,000 1. Calculate the ending inventory value and prepare an income statement using absorption costing. 2. Calculate the ending inventory value and prepare an income statement using variable costing.
Question 1 Smart Technology Company had the following information during the previous year for one of its product lines: Sales Price per Unit $6000 Units in Beginning Inventory 0 Units Started During the Year 55,000 Units Sold 52,000 Variable Costs per Unit: Direct Materials $145 Direct Labor $200 Variable Overhead Costs $75 Fixed Costs: Fixed Overhead per Unit $50 General and Administrative $1,250,000 1. Calculate the ending inventory value and prepare an income statement using absorption costing. 2. Calculate the ending inventory value and prepare an income statement using variable costing.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...
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