The following production data came from the records of Olympic Enterprises for the year ended December 31, 2016: Materials... $480,000 Labor 260,000 ...... Wariable factory overhead... Fixed factory overhead.. 44,000 36,800 ..... .... During the year, 40,000 units were manufactured but only 35,000 units were sold. Determine the effect on inventory valuation by computing the following: 1. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using variable costing. 2. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using absorp- tion costing.

The following production data came from the records of Olympic Enterprises for the year ended December 31, 2016: Materials... $480,000 Labor 260,000 ...... Wariable factory overhead... Fixed factory overhead.. 44,000 36,800 ..... .... During the year, 40,000 units were manufactured but only 35,000 units were sold. Determine the effect on inventory valuation by computing the following: 1. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using variable costing. 2. Total inventoriable costs and the cost of the 35,000 units sold and of the 5,000 units in the ending inventory, using absorp- tion costing.

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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