Question 1

Seal Company had the following information during the previous year for one of its product lines:

Sales Price per Unit $500

Units in Beginning Inventory 0

Units Started during the year 50,000

Units Sold 45,000

Variable Costs per Unit:

Direct Materials: $100

Direct Labor: $175

Variable Overhead Costs: $50

Fixed Costs:

Fixed Overhead per Units $25

General and Administrative $1,000,000

Calculate the Ending Inventory Value and prepare an Income Statement using Absorption Costing

Calculate the Ending Inventory Value and prepare an Income Statement using Variable Costing

***Please clearly label all parts of the work, show all steps and work and complete in an excel file******