Question:234 Given the following data. Beginning Inventory in Units - 0 Units produced - 4,800 Units Sold 4,000 Sales $400,000 Material Cost (unit level/variable) - $96,000 Variable Conversion Cost Used - $48,000 Fixed Manufacturing Cost (Facility Level) - $72,000 Indirect Operating Cost (fixed) - $80,000 What is the difference between the variable costing ending inventory cost and the absorption costing ending inventory cost? Show your complete solution.
Question:234 Given the following data. Beginning Inventory in Units - 0 Units produced - 4,800 Units Sold 4,000 Sales $400,000 Material Cost (unit level/variable) - $96,000 Variable Conversion Cost Used - $48,000 Fixed Manufacturing Cost (Facility Level) - $72,000 Indirect Operating Cost (fixed) - $80,000 What is the difference between the variable costing ending inventory cost and the absorption costing ending inventory cost? Show your complete solution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question:234
Given the following data.
Beginning Inventory in Units - 0
Units produced - 4,800
Units Sold 4,000
Sales $400,000
Material Cost (unit level/variable) - $96,000
Variable Conversion Cost Used - $48,000
Fixed Manufacturing Cost (Facility Level) - $72,000
Indirect Operating Cost (fixed) - $80,000
What is the difference between the variable costing ending inventory
cost and the absorption costing ending inventory cost? Show your
complete solution.
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