Question 1

In the month of June, AnyCorp incurred $44,000 of fixed manufacturing overhead in the production of 18,000 units of a product. Only 8,000 of these units were sold. AnyCorp will carry forward ________ of fixed manufacturing overhead costs into July under _________ costing.

a.

$24,444, absorption

b.

$19,556, variable

c.

$24,444, variable

d.

$19,556, absorption

Question 2

At the beginning of July, Alpha Industrial, which produces a single product, had no units in inventory. Fixed manufacturing costs were $79,000. Production was 15,000 units, but only 12,000 units were sold. Ending inventory under variable costing was $130,000. Ending inventory under absorption costing would therefore be