Easton Pump Company's planned production for the year just ended was 19,000 units. This production level...

 

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Easton Pump Company's planned production for the year just ended was 19,000 units. This production level was achieved, and 21,200 units were sold. Other data follow Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expe Variable selling and administrative expenses Finished-goods inventory, January 1 1531,900 205,000 408,500 104,200 330,600 107,350 3,000 unita The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year t 1. Finished-goods inventary cost 2-a Higher operating income method Difference in reported incon 2-6 Required: 1. What would be Easton Pump Company's finished-goods inventory cost on December 31 under the variable-costing method? (Do not round intermediate calculations.) 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? (Do not round intermediate calculations) seve butt Easton Pump Company's planned production for the year just ended was 19,000 units. This production level was achieved, and 21,200 units were sold. Other data follow Direct material used Direct labor incurred Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expe Variable selling and administrative expenses Finished-goods inventory, January 1 1531,900 205,000 408,500 104,200 330,600 107,350 3,000 unita The cost per unit remained the same in the current year as in the previous year. There were no work-in-process inventories at the beginning or end of the year t 1. Finished-goods inventary cost 2-a Higher operating income method Difference in reported incon 2-6 Required: 1. What would be Easton Pump Company's finished-goods inventory cost on December 31 under the variable-costing method? (Do not round intermediate calculations.) 2-a. Which costing method, absorption or variable costing, would show a higher operating income for the year? 2-b. By what amount? (Do not round intermediate calculations) seve butt

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Solution 1 Particulars Amount Direct Materials Used 571900 Add Direct Labor Incurred 285000 Add Vari... View the full answer