PROBLEM 5-13. Reconciling Variable and Full Costing Income [LO 1, 2]

The following information relates to Jarden Industries for fiscal 2017, the companys first year of operation:

Units produced 150,000

Units sold 120,000

Units in ending inventory 30,000

Fixed manufacturing overhead $900,000

Required

a. Calculate the amount of fixed manufacturing overhead that would be expensed in 2017 using full costing.

b. Calculate the amount of fixed manufacturing overhead that would be expensed in 2017 using variable costing.

c. Calculate the amount of fixed manufacturing overhead that would be included in ending inventory under full costing and reconcile it to the difference between parts a and b. PROBLEM 5-14. Reconciling Variable and Full Costing Income [LO 1, 2] The following information relates to Sinclair Industries for fiscal 2017, the companys first year of operation: Units produced 500,000 Units sold 450,000 Units in ending inventory 50,000 Fixed manufacturing overhead $1,500,000