During the most recent year, Morgancafe Company had the following data associated with the items it makes:

Required:
1. How many units are in ending inventory?
2. Using absorption costing, calculate the per- unit product cost. What is the value of ending inventory?
3. Using variable costing, calculate the per- unit product cost. What is the value of ending inventory?

Transcribed Image Text:

Units in beginning inventory Units produced Units sold ($200 per unit) 18,000 16,000 Variable costs per unit Direct materials Direct labor Variable overhead $23 $46 $15 Fixed costs: Fixed manufacturing overheod per unit produced Fixed selling and administrative $30 $165,000