The following questions are based on Poughkeepsie Pickle Corporation. The companys gourmet pickles are sold to restaurants
Question:
The following questions are based on Poughkeepsie Pickle Corporation. The company’s gourmet pickles are sold to restaurants for 12perunit(onejar).Ofthe100,000unitsproduced,80,000weresoldduringyear1;allendinginventorywasinfinished−goodsinventory.Thecompanyhadnoinventoryatthebeginningoftheyear.Directmaterial(unit−levelorvariablecost)....000.0.0...eee 220,000 Direewlabon (UnitcleveltonVanlablecosiine & Ste disega0ees. eseos ooe 170,000 Manufacturing overhead (unit-level or variable cost),...............05. 90,000 Manufacturing overhead (facility-level or fixed cost)................... 240,000 Selling and administrative (unit-level or variable cost).................. 80,000 Selling and administrative (facility-level or fixed cost).................. 128,000 Required
a. In presenting inventory on the balance sheet at December 31, what is the unit cost under absorption costing?
b. In presenting inventory on a variable-costing balance sheet, what is the unit cost?
c. What is the operating profit using variable costing?
d. What is the operating profit using absorption costing?
e. What is the cost of the ending inventory using absorption costing?
f. | What is the cost of the ending inventory under variable costing
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto