Refer to Exercises E21-49 and E21A-50. ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000

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Refer to Exercises E21-49 and E21A-50.
ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April 2018. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory.
Requirements
1. Which costing method produces the highest operating income? Explain why.
2. Which costing method produces the highest April 30 balance in Finished Goods Inventory? Explain why.
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Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

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