During the most recent year, ABC Corp. had the following data:
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Beginning inventory in units
|
-
|
|
Units produced
|
16,000
|
|
Units sold ($125 per unit)
|
15,000
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$ 10
|
|
Direct labor
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$ 18
|
|
Variable overhead
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$ 6
|
|
Fixed costs:
|
|
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Fixed overhead per unit produced
|
$ 25
|
|
Fixed selling and administrative
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$ 200,000
|
Required:
A. How many units are in ending inventory?
B. Using absorption costing, calculate the per-unit product cost. What is the value of ending inventory?
C. Using variable costing, calculate the per-unit product cost. What is the value of ending inventory?
D. Prepare an income statement using absorption costing.
E. Prepare an income statement using variable costing.