Spar Limited incurs the following costs to produce and sell a single product Varinble costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses O Absorption costing O Variable costing 1-b. Show computations to support your answer. During the last year, 44,300 units were produced and 28.100 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $145.800 for the 5,400 unsold units. Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost, 5,400 units S Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? A 16 Variable Absorption Costing Costing 7 4 6 265,800 421,500

Spar Limited incurs the following costs to produce and sell a single product Varinble costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses O Absorption costing O Variable costing 1-b. Show computations to support your answer. During the last year, 44,300 units were produced and 28.100 units were sold. The Finished Goods Inventory account at the end of the year shows a balance of $145.800 for the 5,400 unsold units. Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Total cost, 5,400 units S Required: 1-a. Is the company using absorption costing or variable costing to cost units in the Finished Goods Inventory account? A 16 Variable Absorption Costing Costing 7 4 6 265,800 421,500

Name: 2. Assume that the company wishes to prepare financial statements for
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Description: 2. Assume that the company wishes to prepare financial statements for the year to issue to its shareholders.a. Is the $145.800 figure for finished goods inventory the correct amount to use on these statements for external reporting purposes?YesNob.

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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