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Question - RefreshAde produced 13,000 cases of powdered drink mix and sold 11,000 cases in April. The sales price was $23?, variable costs were $12 per case ?($9 manufacturing and $3 selling and? administrative), and total fixed costs were $100,000 ?($91,000 manufacturing overhead and $9,000 selling and? administrative). The company had no beginning Finished Goods Inventory. The company had the following results using variable? costing:
Requirements -
1. Prepare the April income statement using absorption costing.
2. Determine the product cost per unit and the total cost of the 2,000 cases in Finished Goods Inventory as of April 30.
3. Is the April 30 balance in Finished Goods Inventory higher or lower than variable? costing? Explain why.
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