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Calculate the amount of fixed manufacturing overhead

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Reference no: EM13935837

The following information relates to Sinclair Industries for fiscal 2011, the company's first year of operation:

Units produced............ $400,000
Units sold.............. $375,000
Units in ending inventory..........$25,000
Fixed manufacturing overhead........$1,000,000

Required:

a. Calculate the amount of fixed manufacturing overhead that would be expensed in 2011 using full costing.
b. Calculate the amount of fixed manufacturing overhead that would be expensed in 2011 using variable costing.
c Calculate the amount of fixed manufacturing overhead that would be included in ending inventory under full costing and reconcile it to the difference between parts a and b.

Reference no: EM13935837

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