Reference no: EM132591069
The following information pertains to Finest Corporation based on Variable Costing:
Selling price per unit $41
Standard fixed manufacturing costs per unit $20
Variable selling and administrative cost per unit $4
Fixed selling and administrative costs $16,000
Beginning inventories:
Units ?
Standard fixed manufacturing cost $40,000
Standard variable manufacturing cost $20,000
Units produced 10,000 units
Units sold 9,600 units
Assume the unit standard costs data for the beginning and ending inventories remained constant during the period.
Required
Question A. What was the total standard cost of the ending inventory under absorption costing.
Question B. Reconcile the difference in retained earnings at the end of the period under absorption costing and variable costing?