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15. [Answer & Solving Process) The following is Pepper Company's absorption costing and variable costing contribution format income statements. 70% of total selling, general, and
15. [Answer & Solving Process) The following is Pepper Company's absorption costing and variable costing contribution format income statements. 70% of total selling, general, and administrative (SG&A) costs are variable SG&A costs, and selling price per unit is $800. What is the ending balance of Finished Goods inventory under absorption costing? (There are no beginning and ending Work-In-Process and no beginning Finished Goods. Round the final answer to the nearest integer.) Absorption Costing Income Statement $960,000 780,000 Sales Cost of goods sold Gross margin SG&A expenses Net operating income (loss) Variable Costing Contribution Format Income Statement Sales $960,000 Total variable expenses 444,000 Contribution margin 516,000 Total fixed expenses 561,000 Net operating income (loss) (45,000) 180,000 120,000 60,000 1 $975,000 2 $420,000 3 $105,000 4 $195,000 5 $320,806 7/7
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