ABC Company divided all of its costs and expenses into fixed and variable. Data for ABC Co's
Question:
ABC Company divided all of its costs and expenses into fixed and variable. Data for ABC Co's first year of operations is as follows:
Beginning inventory of finished goods 0
Units produced (no WIP) 10,000
Units sold 9,000
Units in ending inventory of finished
goods 1,000
Sales price $175 per unit
Variable Mfg costs $65 for each unit manufactured
Variable selling and Admin Expenses $25 per unit sold
Fixed manufacturing costs for year $100,000
Fixed selling and admin expenses for the year $250,000
Using the Absorption Method, calculate the following:
1. Cost of goods mfg for the year
2. The value of the ending inventory of finished goods
3. The cost of goods sold for the year
4. Net income for the year
Using direct costing
1. Ending inventory of finished goods
2. Manufacturing margin for the year
3. Net Income for the year
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina