Solution-Find value of the ending inventory using variable

Find value of the ending inventory using variable costing

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Reference no: EM13870889

1. MountainAir Company has the following selected data for the past year:

Units sold during year
30,000

Units produced during year
45,000

Units in ending inventory
15,000

Variable manufacturing cost per unit
$4.50

Fixed manufacturing overhead (in total)
$20,250

Selling price per unit
$12.00

Variable selling and administrative expense per unit
$1.00

Fixed selling and administrative expenses (in total)
$4,000

There were no units in beginning inventory.

Required:

1a. Prepare an income statement for last year using absorption costing.

1b. Calculate the value of the ending inventory using absorption costing.

1c. Prepare an income statement for last year using variable costing.

1d. Calculate the value of the ending inventory using variable costing.

Reference no: EM13870889

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Find value of the ending inventory using variable costing

Reference no: EM13870889

Reference no: EM13870889

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