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Scaping Ltd. reported the following information for the current year: Selling price (per unit) Direct materials cost (per unit) Direct labour cost (per unit) Variable
Scaping Ltd. reported the following information for the current year: Selling price (per unit) Direct materials cost (per unit) Direct labour cost (per unit) Variable manufacturing overhead cost (per unit) Variable selling and administrative costs (per unit sold) Fixed manufacturing overhead cost Fixed selling and administrative expenses Units produced Units sold $750 $30 $90 $80 $80 $1,000,000 $700,000 50,000 40,000 Assume that the company did not have any beginning inventory. Required (A) Compute the number of units in endings Finished Goods Inventory. (B) Using Absorption Costing, compute the value of the ending Finished Goods Inventory? (C)Using Absorption Costing, compute the total COGS? (D) Using Absorption Costing, compute the company's net income for the period? (E) Using Variable Costing, compute the value of the ending Finished Goods Inventory? (F) Using Variable Costing, compute the total COGS? (G)Using Variable Costing, compute the company's net income for the period? (H)Why is the net income computed using Absorption Costing different from the amount computed using Variable Costing
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