Reference no: EM132478809
variable cost per unit:
direct materials $2.85
direct labor $1.92
variable overhead $1.60
variable selling $0.90
fixed cost per unit:
fixed overhead $180,000
selling and administrative $96,000
Point 1: During the year, borques produced 200,000 wooden pallets and sold 204,300 at $9 each. Borques has 8,200 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing
Question 1: What is the per-unit inventory cost that is acceptable for reporting on Borques's balance sheet at the end of the year?
Question 2: How many units are in ending inventory?
Question 3: What is the total cost of ending inventory?
Question 4: Calculate absorption-costing operating income.
Question 5: What would the per-unit inventory cost be under variable costing? Round your answer to the nearest cent. Does this differ from the unit cost computed in Requirement 1?
Question 6: Calculate variable-costing operating income.
Question 7: Suppose that Borques Company had sold 196,700 pallets during the year. What would absorption-costing operating income have been?
Question 8: What would variable-costing operating income?