Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information relates to Ronald Industries for fiscal 2008, the companys first year of operation: Units produced 100,000 Units sold 80,000 Units in ending
The following information relates to Ronald Industries for fiscal 2008, the companys first year of operation:
Units produced | 100,000 |
Units sold | 80,000 |
Units in ending inventory | 20,000 |
Fixed manufacturing overhead | $500,000 |
Required:
- Calculate the amount of fixed manufacturing overhead that would be expensed in 2008 using full costing.
Fixed manufacturing overhead calculated using full costing is equal to Fixed manufacturing overhead for the year/ number of units produced
=$500,000 / 100,000
= $5
- Calculate the amount of fixed manufacturing overhead that would be expensed in 2008 using variable costing.
- 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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