Consider the following information pertaining to a year'soperations of Youngstown Mfg.:
|
Units sold
|
1,400
|
|
Units produced
|
1,600
|
|
Direct labor
|
$4,200
|
|
Direct materials used
|
3,500
|
|
Fixed manufacturing overhead
|
2,200
|
|
Variable manufacturing overhead
|
300
|
|
Selling and administrative expenses (all fixed)
|
700
|
|
Beginning inventories
|
0
|
|
Contribution margin
|
5,600
|
|
Direct-material inventory, end
|
800
|
There are no work-in-process inventories.
1. What is the ending finished-goods inventory cost underabsorption costing?
2. What is the ending finished-goods inventory cost undervariable costing?