Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of 2017: 9.000 8,700 $60 $8 Beginning inventory (cases) Cases produced Cases sold Sales price per case Direct materials per case Direct labor per case Variable manufacturing overhead per case Total fixed manufacturing overhead Variable selling and administrative cost per case Fixed selling and administrative cost $3 S300,000 $2 S48,000 (a) Prepare a functional income statement for the quarter using absorption costing. (Round answers to the nearest dollar. Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter 2017 Sales 5 522.000 Cost of goods sold: Variable costs S 180,000 Fixed costs 320,000 x Goods available 500,000 x Ending inventory 44.444.44 X 455.555.56 x Gross profit 36.444.44 X Operating expenses: Variable selling and administrative $ 16,400 x Fixed selling and administrative 48,000 64.400 x Net income (loss) $ (27.955.56) X (b) Prepare a contribution income statement for the quarter using variable costing. (Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Contribution (Variable Costing) Income Statement For the Summer Quarter 2017 Sales $ 492.000 X Variable expenses Manufacturing $ 164,000 x Selling and administrative 16,400 x 180,400 x Contribution margin 311.600 X Fixed expenses: Manufacturing overhead $ 320.000 x Selling and administrative 48,000 368,000 X Net Income (loss) S (56.400) X (c) What is the value of ending inventory under absorption costing? (Round answer to the nearest whole number.) $ 44,444.44 x (d) What is the value of ending inventory under variable costing? $ 16,000 x