Variable CostingSales Exceed Production

The beginning inventory is 9,000 units. All of the units that were manufactured during the period and 9,000 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $36 per unit, and variable manufacturing costs are $81 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.)

OR

(Variable costing operating income is less than absorption costing.)

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

Contribution Margin by Segment The following data are for Moss Creek Apparel: East West Sales volume (units): Product XX 4,900 4,100 Product YY 3,400 6,100 Sales price: Product XX $10 $12 Product YY $13 $15 Variable cost per unit: Product XX $6 $6 Product YY $8 $8 a. Determine the contribution margin for Product W. 4: b. Determine the contribution margin for the West Region. 4: Inventory valuation under absorption costing and variable costing At the end of the first year of operations, 20,200 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $32 Direct labor 21 Fixed factory overhead 18 Variable factory overhead 11 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. X iii Open spreadsheet Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. a. Cost of the finished goods inventory under the absorption costing: b. Cost of the finished goods inventory under the variable costing