Problem 5-2 (Part Level Submission)

Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first three years of business is as follows:

2014 2015 2016 Total Units sold 4,550 4,550 4,550 13,650 Units produced 4,550 5,460 3,640 13,650 Fixed production costs $54,600 $54,600 $54,600 Variable production costs per unit $73.00 $73.00 $73.00 Selling price per unit $230 $230 $230 Fixed selling and administrative expense $223,400 $223,400 $223,400

(a)

Calculate cost per unit, profit and the value of ending inventory for each year using full costing. (Round cost per unit to 2 decimal places, e.g. 15.25 and other answers to 0 decimal places, e.g. 125.)

2014 2015 2016 Cost per unit $ $ $ Net profit $ $ $ Ending inventory $ $ $

(b)

Calculate profit and the value of ending inventory for each year using variable costing.

2014 2015 2016 Net profit $ $ $ Ending inventory $ $ $