Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable manufacturing overhead $ 0.40 Total variable manufacturing costs per unit $ 2.00 Fixed manufacturing
| Productions Costs: | ||
| Direct material | $ 0.60 | |
| Direct labor | $ 1.00 | |
| Variable manufacturing overhead | $ 0.40 | |
| Total variable manufacturing costs per unit | $ 2.00 | |
| Fixed manufacturing overhead per year | $ 139,000.00 | |
| In addition, the company has fixed selling and administrative costs: | ||
| Fixed selling costs per year | $ 50,000.00 | |
| Fixed administrative costs per year | $ 65,000.00 | |
| Selling price per cookie | $ 3.75 | |
| Number of cookies produced | 2,780,000 | |
| Number of cookies sold | 2,600,000 | |
| Full (absorption) costing : | ||
| Full cost per unit | ||
| Ending Inventory Full (absorption) costing | ||
| Variable costing : | ||
| Variable cost per unit | ||
| Ending Inventory Full (absorption) costing | ||
- Calculate the value of ending inventory under full or absorption costing.
- Calculate the value of ending inventory under variable costing.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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