Question
Indirect labor (variable) $900,000 Indirect materials (variable) 600,000 Other variable manufacturing overhead 1,500,000 Fixed manufacturing overhead 2,400,000 Fixed administrative expenses 800,000 Fixed selling expenses 450,000
Indirect labor (variable) | $900,000 |
Indirect materials (variable) | 600,000 |
Other variable manufacturing overhead | 1,500,000 |
Fixed manufacturing overhead | 2,400,000 |
Fixed administrative expenses | 800,000 |
Fixed selling expenses | 450,000 |
Variable selling expenses, per unit | 40 |
Direct labor, per unit | 50 |
Direct materials, per unit | 25 |
Last year, Green Lawn Company produced 300,000 units and sold 280,000 units. Beginning inventory was zero. During the period, the following costs were incurred:
Required:
A. Compute the dollar amount of ending inventory using the Absorption costing. $
B. Compute the dollar amount of ending inventory using the Variable costing. $
Pleas show your work on how you got the answers.
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