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A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per unit in variable selling and administrative cost.
A company has $25 per unit selling price, $7.00 per unit in variable production cost and $2.00 per unit in variable selling and administrative cost. The annual fixed production cost is $400,000. The annual fixed selling and administrative cost is $50,000.
Complete the table below for each year. Assume a FIFO flow.
2016 2017 2018 2019
Units Produced 120,000 150,000 100,000 100,000
Units Sold 110,000 120,000 140,000 100,000
Cost per unit under variable costing
Cost per unit under absorption costing
Operating income under variable costing
Operating income under absorption costing
Ending inventory using variable costing ( $ )
Ending inventory using absorption costing ( $ )
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