North Atlantic Corporation produces a single product. The company had no beginning inventory and they produced 70,000
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Question:
North Atlantic Corporation produces a single product. The company had no beginning inventory and they produced 70,000 units in 2022 and sold 60,000 units. The operating data for 2022 follow:
Sales$1,380,000
Manufacturing costs:
Direct Materials$294,000
Direct Labor182,000
Variable overhead273,000
Fixed overhead150,500
Selling & Administrative expenses:
Fixed$140,000
Variable258,000
Required:
A). Calculate the value of the ending finished goods inventory under variable costing.(4 Marks)
B). an Income Statement using variable costing.(7 Marks)
C). an Income Statement using absorption coating(6 Marks)
D). Explain in detail the net income differs under the two accounting methods.(3 Marks)
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