Question
. Acme, Inc. manufactures headlights for large trucks. Here are data for the current year: Beginning inventory, units None Units produced 4,000 Units sold 3,200
. Acme, Inc. manufactures headlights for large trucks. Here are data for the current year: Beginning inventory, units None Units produced 4,000 Units sold 3,200 Variable manufacturing costs $500,000 total Fixed manufacturing overhead costs $120,000 total
a. What is the per-unit production cost under variable costing? Absorption costing?
b. What is ending inventory under variable costing? Absorption costing?
c. What is COGS under variable costing? Absorption costing? \
d. How much fixed manufacturing overhead is treated as a period cost under variable costing? Absorption costing?
e. What is the difference in operating income under variable costing versus absorption costing?
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