Question

Fringe-Factory Fringe-factory-produces-fun-keychains-and-has-reported the following data-for August. 1 0! Beginning inventory Units produced Units-soldg 105,000 95,000 og Selling price per unit Variable manufacturing costo Variable non-manufacturing costs Fixed-manufacturing costa Fixed non-manufacturing costa $8- $1.40 $1.25 $210,000 $70,000 Absorption Costing Net-Income 1 $248,250- 1 1)-What-is-the-product-cost-per-unit-using-absorption costing? ($3.40)1 T 1 1 2) What is the value of ending inventory using absorption costing?-($34,000)1 T 1 1 3) What-is-the-product-cost per unit-using-variable costing?-($1.40)1 1 11 11 4)-What-is-the-value of ending inventory using variable costing? ($14,000) 1 T 1 5) What is net income-using variable costing-(reconcile-this-from the absorption costing net income- rather than making an income statement using variable costing)-($228,250) TT

Answer 1

Study Note absorption method under variable and fixed Cost Calculate product Cost Lost is Costing call manufacturing includes to are Requirement. 2) Value under absorption Casting of Ending Inventory Ending Inventory opening Inventory & unit produced. Sales units 950od 0 + 105 OTO 10oto value of Ending Inventory product unit Cast x Ending Inventory $ 3.40 X 1000D $ 34000 Requirement 37 product Cost per unit using Variable Costing - Variable Casting is method. under only Variable manufacturing Cost are Considered. as product Cost. and fixed Cost has been deducted from Gross margin. product Cost per unit Cost $ 1.40 variable manufacturing
REQUIREMENT NUMBER 5 IS BASED ON , INSTRUCTION GIVEN IN THE QUESTION .