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
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id administrative expense.
***
*******
180,000
The factory produced 80,000 units during the period, and 70,000
units were sold for $700,000.
1. Prepare an income statement using variable costing.
2. Prepare an income statement using absorption costing.
(Round unit costs to three decimal places.)
E10-4
Using variable and absorption costing
The following production data came from the records of Olympic
Enterprises for the year ended December 31, 2016:
LO1
Materials....
$480,000
Labor.....*
260,000
44,000
Variable factory overhead.
Fixed factory overhead....
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.
Determining income by absorption costing
A company had income of $50.000, using variable cos
given period. Beginning and ending inventories for th
were 18,000 units and 13,000 units, respectively. If the fi
E10-5
We've updated our read aloud feature!
Give it a try hene.
head annlication rate wae S2 ner unit what wae tho no m
559
口
8 Aa 4)
a
P. Type here to search
Transcribed Image Text:id administrative expense. *** ******* 180,000 The factory produced 80,000 units during the period, and 70,000 units were sold for $700,000. 1. Prepare an income statement using variable costing. 2. Prepare an income statement using absorption costing. (Round unit costs to three decimal places.) E10-4 Using variable and absorption costing The following production data came from the records of Olympic Enterprises for the year ended December 31, 2016: LO1 Materials.... $480,000 Labor.....* 260,000 44,000 Variable factory overhead. Fixed factory overhead.... 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. Determining income by absorption costing A company had income of $50.000, using variable cos given period. Beginning and ending inventories for th were 18,000 units and 13,000 units, respectively. If the fi E10-5 We've updated our read aloud feature! Give it a try hene. head annlication rate wae S2 ner unit what wae tho no m 559 口 8 Aa 4) a P. Type here to search
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