The income statement for Muckey Inc. (Muckey) for the month ended April 30, 2021, is as...

 

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The income statement for Muckey Inc. (Muckey) for the month ended April 30, 2021, is as follows: Sales (112,500 units) Variable cost of goods sold Beginning inventory Variable manufacturing overhead Ending inventory Variable selling expense Contribution margin Fixed manufacturing overhead Fixed selling expense Net income 156,250 500,000 (93.750) $1,462,500 562,500 112,500 787,500 300,000 112,500 $375,000 Muckey's variable production costs per unit and total fixed costs were consistent with costs in the first quarter of 2021. Muckey manufactured 100,000 units in April 2021. Required: a) Calculate Muckey's ending inventory (in dollars) at April 30, 2021, using absorption costing. (4 marks) b) Calculate Muckey's net income for April 2021 using absorption costing. (2 marks) The income statement for Muckey Inc. (Muckey) for the month ended April 30, 2021, is as follows: Sales (112,500 units) Variable cost of goods sold Beginning inventory Variable manufacturing overhead Ending inventory Variable selling expense Contribution margin Fixed manufacturing overhead Fixed selling expense Net income 156,250 500,000 (93.750) $1,462,500 562,500 112,500 787,500 300,000 112,500 $375,000 Muckey's variable production costs per unit and total fixed costs were consistent with costs in the first quarter of 2021. Muckey manufactured 100,000 units in April 2021. Required: a) Calculate Muckey's ending inventory (in dollars) at April 30, 2021, using absorption costing. (4 marks) b) Calculate Muckey's net income for April 2021 using absorption costing. (2 marks) The income statement for Muckey Inc. (Muckey) for the month ended April 30, 2021, is as follows: Sales (112,500 units) Variable cost of goods sold Beginning inventory Variable manufacturing overhead Ending inventory Variable selling expense Contribution margin Fixed manufacturing overhead Fixed selling expense Net income 156,250 500,000 (93.750) $1,462,500 562,500 112,500 787,500 300,000 112,500 $375,000 Muckey's variable production costs per unit and total fixed costs were consistent with costs in the first quarter of 2021. Muckey manufactured 100,000 units in April 2021. Required: a) Calculate Muckey's ending inventory (in dollars) at April 30, 2021, using absorption costing. (4 marks) b) Calculate Muckey's net income for April 2021 using absorption costing. (2 marks)

Answer rating: 100% (QA)

a To calculate Muckeys ending inventory using absorption costing we need to consider both variable a... View the full answer