Use the information from Exercise 14.18. The production variable cost ($40,000) includes $25,000 in direct materials and

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Use the information from Exercise 14.18. The production variable cost ($40,000) includes $25,000 in direct materials and $15,000 in direct labor.

REQUIRED

A. Using the throughput costing method:

(1) Calculate the cost of ending inventory and

(2) Prepare an income statement for the current period.

B. Reconcile income under the throughput costing method with income under the variable costing method.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

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Question Posted: Jan 26, 2015 02:15 AM

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Use the information from Exercise 14.18. The production variable cost ($40,000) includes $25,000 in direct materials and

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A Throughput costing Direct cost per unit 250005000 units produced 5 per unit Other variable manufac...View the full answer

Cost Management Measuring Monitoring and Motivating Performance

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