Question - Boats Corp. manufactures the boats. Production and sales data for the most recent year are as follows (no beginning inventory):
Variable production costs $85 per boats
Fixed production costs $530,000
Variable selling & administrative costs $17 per boats
Fixed selling & administrative costs $480,000
Selling price $195 per boats
Production 21,200 boats
Sales 19,000 boats
Required:
a) Prepare an income statement using absorption costing?
b) Calculate the amount to be reported for inventory in the year end absorption costing balance sheet?