Chapter 8, Problem 37P

1.

To determine

Compute the company’s total cost of company E for the current year.

2.

To determine

Identify the amount of cost that would be held in year-end inventory under (a) absorption costing and (b) variable costing.

3.

To determine

Identify the amount of company’s total cost for the year that would be included as an expense on the period’s income statement under (a) absorption costing and (b) variable costing.

4.

To determine

Prepare an excel sheet and solve the given calculations, assume that the direct-material cost is

$11 per unit and the total direct-labor cost is $46,000.