During its first year of operations, Snobegon, Ine. (located in Lake Snobegon, Minnesota), pro- duced 40,000...

  

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During its first year of operations, Snobegon, Ine. (located in Lake Snobegon, Minnesota), pro- duced 40,000 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,200 scoops. Fixed overhead was applied at S0.75 per unit produced. Fixed overhead was underapplied by $2,900. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's opera- tions are as follows (on an absorption-costing basis): S764,000 546,260 $217,740 Sales (38,200 units @ $20) Less: Cost of goods sold Gross margin Less: Selling and administrative expenses (all fixed) Operating income 184,500 $ 33.240 Required: . Calculate the cost of the firm's ending inventory under absorption costing. What is the cost of the ending inventory under variable costing? (Round unit costs to five significant digits.) - Prepare a variable-costing income statement. Reconcile the difference between the two income figures, 13.4740 Y 180o During its first year of operations, Snobegon, Ine. (located in Lake Snobegon, Minnesota), pro- duced 40,000 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,200 scoops. Fixed overhead was applied at S0.75 per unit produced. Fixed overhead was underapplied by $2,900. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's opera- tions are as follows (on an absorption-costing basis): S764,000 546,260 $217,740 Sales (38,200 units @ $20) Less: Cost of goods sold Gross margin Less: Selling and administrative expenses (all fixed) Operating income 184,500 $ 33.240 Required: . Calculate the cost of the firm's ending inventory under absorption costing. What is the cost of the ending inventory under variable costing? (Round unit costs to five significant digits.) - Prepare a variable-costing income statement. Reconcile the difference between the two income figures, 13.4740 Y 180o

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Answer Cost of goods sold given 546260 Less Fixed overhead und... View the full answer