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On March 31, Brass Companys March absorption costing accounting system contained the following information. Assume per units costs for February were the same as the
On March 31, Brass Companys March absorption costing accounting system contained the following information. Assume per units costs for February were the same as the March per unit costs.
Units sold | 82,000 |
Units Produced | 80,000 |
Sales Price | $40.00 |
Total Cost of Goods Manufactured | $1,600,000 |
Total Selling & Admin. Expenses | $100,000 |
Units in Ending Inventory | 1,000 |
Fixed Manufacturing Costs | $200,000 |
Fixed Selling & Admin. Expenses | $60,000 |
Required:
- Determine the March Ending Inventory balance using absorption costing (Show your work).
- Determine the March Beginning Inventory balance using absorption costing (Show your work).
- Determine the Ending Inventory balance using variable costing (Show your work).
- Determine the March Beginning Inventory balance using variable costing (Show your work).
- Prepare an Absorption Costing Income Statement down to the Operating Income level.
- Prepare a Variable Costing Income Statement down to the Operating Income level.
- Show how the difference in the operating incomes in (C) and (D) occurred. In other words, show me how you would reconcile the difference.
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