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Altoona Valve Company's planned production for the year just ended was 19,300 units This production level was achieved, and 20,600 units were sold. Other data
Altoona Valve Company's planned production for the year just ended was 19,300 units This production level was achieved, and 20,600 units were sold. Other data follow: Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative $567,420 303,010 401,440 189140 331,960 expenses Variable selling and administrative 107115 expenses Finished-goods inventory, January 1,800 units The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year. Required: 1. What would be Altoona Valve Company's finished-goods inventory cost on December 31 under the variable-costing method? (Do not round your intermediate calculations.) Finished-goods inventory cost 2- Which costing method, absorption or variable costing, would show a higher a. operating income for the year? Absorption costing Variable costing 2- , By what amount? (Do not round your intermediate calculations.) Difference in reported income
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