#1

#2

Absorption-Costing Income Statement

During the most recent year, Osterman Company had the following data:

Units in beginning inventory
Units produced	10,000
Units sold ($47 per unit)	9,300
Variable costs per unit:
Direct materials	$9
Direct labor	$6
Variable overhead	$4
Fixed costs:
Fixed overhead per unit produced	$5
Fixed selling and administrative	$138,000

Required:

1. Calculate the cost of goods sold under absorption costing.

$

2. Prepare an income statement using absorption costing. Enter amounts as positive numbers.

Osterman Company
Income Statement under Absorption Costing
For the Most Recent Year
	$
	$
	$

(Please show work)

Inventory Valuation under Absorption Costing During the most recent year, Judson Company had the following data associated with the product it makes: 300 Units in beginning inventory Units produced 15,000 Units sold ($300 per unit) 12,700 Variable costs per unit: Direct materials Direct labor Variable overhead Fixed costs: Fixed overhead per unit produced $30 Fixed selling and administrative $140,000 Required: 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? $