https://www.coursehero.com/file/39370379/VariableCostingCasePartApdf/

Question 1: What is the value of the finished goods inventory in year 1?

Question 2: What is the operating income in year 1?

Question 3: What is the operating income in year 2?

Variable Costing Case Part A Techlight Inc. gives you the following data. Variable manufacturing cost per unit $10 (includes direct material, direct labor, variable MOH) Variable selling cost per unit $3 Fixed manufacturing costs for the year $150,000 Fixed selling costs for the year $100,000 Techlight Inc. had no beginning inventories in year 1. It produced 25,000 units and sold 20,000 units during the year. The selling price per unit was $ 30. In year 2, Techlight Inc. started with an inventory of 5,000 units, produced 25,000 units and sold 30,000 units at $30 each. Techlight is a US based company and follows US GAAP. It treats all manufacturing costs (fixed and variable) as product costs. Fill up the details under the absorption accounting columns in the excel spreadsheet provided to you relating to 1) Physical inventory units 2) Cost of goods sold ($) 3) Traditional Income Statement Learning Outcomes: The purpose of this case is to make sure that you understand product costs vs. period costs and can traditional income statement for more than one year.