Reference no: EM132854424

Question 1 - X manufacturing company has a capacity to produce 10000 units monthly at variable manufacturing cost of $20 per unit and fixed manufacturing cost of $100,000 per month, at a meanwhile operating expense is $5 per unit sold and fixed operating expense $20,000, on January beginning inventory is 0 and units produced 10000, 8000 units sold, in February 9000 units produced and 6000 sold. Compute the Cost of ending inventory for January using absorption costing method if Selling price $50 per unit?

a. $62,222.

b. $40,000.

c. $60,000.

Question 2 - RARA Company using process costing method to allocate cost between cost of goods sold and ending finished goods, following data related to January: Physical units, Beginning inventory 500 units and units started 4500 units while units ending inventory 1000, cost of beginning DM $20,000 and CC $10,000 while cost of units added during January $80,000 and $70,000, degree of completion 100% of DM and Beginning CC 60% and Ending CC 50%, Using WA method compute equivalent units for ending inventory from CC?

a. 1000.

b. 0

c. 500.