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Barth Industries began operations on January 1, 2004. The company sells a single product for $10 per unit. During 2004, 60,000 units were produced and
Barth Industries began operations on January 1, 2004. The company sells a single product for $10 per unit. During 2004, 60,000 units were produced and 50,000 units were sold. There was no work in process inventory at December 31, 2004. Barth uses an actual cost system for product costing and actual costs for 2004 were as follows: Variable Costs Direct materials $2.00 per unit produced Direct labour.. $1.00 per unit produced Manufacturing overhead. $60,000 $0.50 per unit produced Selling and administrative expense...... $40,000 $0.80 per unit sold Fixed Costs 161 Segmented Reporting and Performance Evaluation PROBLEM 1 (Continued) 4. Reconcile the difference between variable-costing income and absorption-costing income
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