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Case #4 In 2020, Camcor Inc. recorded sales of 75,000 units at a selling price of $120 per unit and output of 100,000 units. Other
Case #4 In 2020, Camcor Inc. recorded sales of 75,000 units at a selling price of $120 per unit and output of 100,000 units. Other information for the year included: Units in beginning inventory 0 Direct materials per unit $15.00 Direct labour per unit $18.75 Variable overhead per unit $10.00 Variable selling expenses per unit $8.00 Fixed overhead per unit $20.00 Fixed selling and administration $100,000 Required: A) What is the product cost per unit under absorption costing? B) What is the value of the ending finished goods inventory under absorption costing? C) What is the cost of goods sold under absorption costing? D) What is the operating income under absorption costing? E) What is the product cost per unit under variable costing? F) What is the value of the ending finished goods inventory under variable costing? G) What is the cost of goods sold under variable costing? H) What is the operating income under variable costing? 1) Why is the income different under absorption costing and variable costing? Discuss
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