Variable Costing$-$Sales Exceed Production

The beginning inventory is $24,100$ ?units. All of the units that were manufactured during the period and $24,100$ ?units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $$53$ ?per unit, and variable manufacturing costs are $$99$ ?per unit.

a$.$ ?Determine whether variable costing operating income is less than or greater than absorption costing operating income.

Variable costing operating income is greater than absorption costing.

b$.$ ?Determine the difference in variable costing and absorption costing operating income.

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a$.$ ?Recall that when units manufactured exceed the units sold, the variable costing operating income will be less than it is for absorption costing.

b$.$ ?Sold units of the beginning inventory $x$ ?fixed costs per unit $=$ ?difference between variable and absorption costing operating income