13-B3 COMPARISON OF VARIABLE COSTING AND ABSORPTION COSTING PAGE 617

ACC 561 Question 13-B3 Consider the following information
pertaining to a year’s operations of Youngstown Manufacturing:

13-B3 COMPARISON OF VARIABLE COSTING AND ABSORPTION COSTING
PAGE 617

Introduction to Management Accounting: Horngren, C. T.,
Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2008).

Introduction to Management Accounting (14th ed.). Upper
Saddle River, New Jersey: Pearson- Prentice Hall.

Question 13-B3,

Comparison of Variable Costing and Absorption Costing,

On p. 617

Axia College of University of Phoenix (UoP)

Question 13 B3:

13-B3 Comparison of Variable Costing and Absorption Costing

Consider the following information pertaining to a year’s
operations of Youngstown Manufacturing:

Units sold 1,400	1400
Units produced 1,600	1600
Direct labor $4,200	4200
Direct materials used 3,500	3500
Fixed manufacturing overhead 2,200	2200
Variable manufacturing overhead 300	300
Selling and administrative expenses (all fixed) 700	700
Beginning inventories 0	0
Contribution margin 5,600	5600
Direct-material inventory, end 800	800

1. What is the ending finished-goods inventory cost under
absorption costing?

2. What is the ending finished-goods inventory cost under
variable costing?