1. Kester Company had ending inventory cost of $5,000 under absorption costing. ending inventory cost $3,400 under...
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If unit fixed overhead is based on normal production of 16,000 units, what was total fixed overhead?
2. Gonsalves Company has prime cost of $6 per unit. Total fixed overhead is $23,000 and is allocated based on normal production of 20,000 units. ending inventory consists of 6,000 units which cost $8.00 per unit under absorption costing. What is variable overhead cost per unit? Round your answer to the nearest cent.
3. Last year, Shermer Company's operating income was $45,000 under absorption costing and $42,500 under variable costing. Fixed overhead was applied at the rate of $2.50 per unit. Beginning inventory was zero. How many units were in ending inventory?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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