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11. The following information pertains to Chacon Inc. for last year: eginning inventory in units Units produced Units sold Variable costs per unit: 5,000 20,000
11. The following information pertains to Chacon Inc. for last year: eginning inventory in units Units produced Units sold Variable costs per unit: 5,000 20,000 23.700 Direct materials Direct labor Variable overhead Variable selling expense $8.00 S4.00 S1.50 S3.00 Fixed costs per year: Fixed overhead Fixed selling an administrative expenses $83,000 $24,300 There are no work-in-process inventories. Normal activity is 20,000 unts. Expected and actual overhead costs are the same. Cost have not changed from one year to the next. Required a. Compute the unit cost using absorption costing and variable costing. b. How many units are in ending inventory? c. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income
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