During the most recent year, Boston Corp. had the following data: Beginning inventory in units - Units
Question:
During the most recent year, Boston Corp. had the following data:
Beginning inventory in units | - |
Units produced | 15,000 |
Units Sold ($125 per unit) | 12,000 |
Variable costs per unit: | |
Direct materials | $15 |
Direct labour | $20 |
Variable Overhead | $10 |
Fixed costs: | |
Fixed overhead costs per unit produced | $20 |
Fixed and administrative sales | $ 200,000 |
Required:
A. How many units are in ending inventory?
B. Using the cost of absorption, calculate the cost of the product per unit. What is the ending inventory value?
C. Using variable costing, calculate the cost per unit of the product. What is the ending inventory value?
D. What is the revenue using variable cost? (without absorption costs).
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman