Question
Inventory valuation under absorption costing and variable costing At the end of the first year of operations, 20,800 units remained in the finished goods inventory.
Inventory valuation under absorption costing and variable costing
At the end of the first year of operations, 20,800 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
| Direct materials | $34 | |
| Direct labor | 13 | |
| Fixed factory overhead | 20 | |
| Variable factory overhead | 7 |
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
| a. Cost of the finished goods inventory under the absorption costing: | $ |
| b. Cost of the finished goods inventory under the variable costing: |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Coping With Financial Accounting 1 For Senior Secondary Schools And Undergraduate Studies
Authors: Festus Chukwunwendu Akpotohwo ,Stella Alfred-Jaja Wellington-Igonibo ,Cletus Ogeibiri
1st Edition
3659611034, 978-3659611032
