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X starts the year with no inventory and expects to sell 6,000 units at $15 per unit. The per-unit variable manufacturing cost is $4. The
X starts the year with no inventory and expects to sell 6,000 units at $15 per unit. The per-unit variable manufacturing cost is $4. The only variable nonmanufacturing cost is a $2 sales commission. The expected fixed costs for the period are $30,000 for manufacturing costs and $10,000 for nonmanufacturing costs.
1 If the X produces 10,000 units, what would be its GAAP income (i.e. using absorption costing 2 Assuming the company produces 8,000 units during the year, what is the value of its ending inventory under variable costing?
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