Question - Inventory Valuation under Absorption Costing
During the most recent year, Judson Company had the following data associated with the product it makes:
Units in beginning inventory 300
Units produced 15,200
Units sold ($300 per unit) 12,700
Variable costs per unit:
Direct materials $20
Direct labor $60
Variable overhead $12
Fixed costs:
Fixed overhead per unit produced $30
Fixed selling and administrative $140,000
1. How many units are in ending inventory?
2. Using absorption costing, calculate the per-unit product cost.
3. What is the value of ending inventory under absorption costing?
Question - Inventory Valuation under Variable Costing
During the most recent year, Judson Company had the following data associated with the product it makes:
Units in beginning inventory 300
Units produced 15,000
Units sold ($300 per unit) 12,700
Variable costs per unit:
Direct materials $20
Direct labor $60
Variable overhead $10
Fixed costs:
Fixed overhead per unit produced $30
Fixed selling and administrative $140,000
1. How many units are in ending inventory?
2. Using variable costing, calculate the per-unit product cost.
3. What is the value of ending inventory under variable costing?