1. Shriner Inc. produces a single product and reports the following data for its first month of operations:

Number of units sold 700 Number of units produced 800

Variable cost per unit: Direct materials $60 Direct labor $25 Manufacturing overhead $15 Selling and administrative $10

Fixed costs: Manufacturing overhead $40,000 Selling and administrative $37,000

Compared to variable costing, how much higher would the months net income be under absorption costing?

2. It its first month of operations, Farmbeck, Inc. used direct materials of $500,000 and conversion costs of $535,500. Farmbeck started 100,000 units into production during the month, of which 92,000 units were completed. Units remaining in process at month-end were 100% complete with respect to direct materials but only 40% complete with respect to conversion costs. Using process costing, what would be the final balance in Farmbecks Work in Process account at the end of the month?