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

Answer rating: 100% (QA)

Absorption Costing 1 Cost of goods manufactured for the year Variable manufacturing costs 10000 unit... View the full answer