The following information from the first-year absorption-based accounting records of Shalom Company was made available: Total fixed
Question:
The following information from the first-year absorption-based accounting records of Shalom Company was made available:
Total fixed costs incurred 120,000
Total variable costs incurred 60,000
Total period costs incurred 90,000
Total variable period costs incurred 40,000
Produced 10,000 units
Sold 8,000 units
Sales price 15 per unit
Compute the following:
(1) Total manufacturing costs for the year.
(2) Fixed manufacturing overhead per unit.
(3) Cost of Goods Sold for the year.
(4) Cost of ending inventory to be presented in the financial position.
(5) Income/(loss) under Variable Costing.
(6) Income/(loss) under Absorption Costing.
(7) Which is higher, fixed production cost or fixed period costs? Use the underlined words in capital letters as your choice.
Expert Answer:
The detailed answer for the above question is provided below 1 Total manufacturing costs for the yea... View the full answer
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
