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Fast Track Auto produces and sells an auto part for $85 per unit. In 2022, 125,000 parts were produced, and 90,000 units were sold. Beginning
Fast Track Auto produces and sells an auto part for $85 per unit. In 2022, 125,000 parts were produced, and 90,000 units were sold. Beginning inventory was 5,000 units. Other information for the year includes: Required: Please calculate the following ( 3 points each): 1. What is the amount of units in ending finished goods inventory? 2. What is the inventoriable (product) cost per unit using: a. Absorption costing b. Variable costing 3. What is the total cost of goods sold in 2022 using: a. Absorption costing b. Variable costing 4. What is the ending finished goods balance in 2022 using: a. Absorption costing b. Variable costing 5. Which will produce higher income, absorption or variable? Why? What is the amount of dollar difference in income between absorption costing and variable costing in this situation described here
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