Reference no: EM13351931
Kirk Company gathered the subsequent information for the year ended 31st December, 2015:
Units produced 45,000
Units expected to be produced 45,000
Units sold 43,200
Direct labor $137,200
Direct materials used $126,400
Fixed selling and administrative expenses $51,000
Variable selling and administrative expenses $58,000
Fixed manufacturing overhead $83,250
Variable manufacturing overhead $73,900
Gross margin $171,200
Direct materials inventory, 31st December, 2015 0
Direct materials inventory, 31st December, 2014 0
Work-in-process inventory, 31st December, 2015 0
Work-in-process inventory, 31st December, 2014 0
Finished goods inventory, 31st December, 2014 0
Required:
A) Under absorption costing, evaluate the cost of the finished goods inventory on 31st December, 2015
B) Under variable costing, evaluate the cost of the finished goods inventory on 31st December, 2015