At the end of the first year of operations, 7,500 units remained in the finished goods inventory.

Question:

At the end of the first year of operations, 7,500 units remained in the finished goods inventory. The unit manufacturing cost during the year were as follows:
Direct material .......... $ 52.00
Direct labor ............ 25.00
Fixed factory overhead ....... 8.40
Variable factory overhead ...... 7.40
Determine the cost of the finished goods inventory reported on the under
(a) The absorption costing concept and
(b) The variable costing concept.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...