ACCT 346 Week 4 Homework Assignment

ACCT 346 Week 4 Homework Assignment

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Attachments: ACCT 346 Week 4 Homework Assignment.docx [ Preview Here ]

1.MountainAir Company has the following selected data for the past year:

 

Units sold during year 30,000

Units produced during year    45,000

Units in ending inventory       15,000

Variable manufacturing cost per unit  $ 4.50

Fixed manufacturing overhead (in total)        $ 20,250

Selling price per unit   $ 12.00

Variable selling and administrative expense per unit  $ 1.00

Fixed selling and administrative expenses (in total)   $ 4,000

 

There were no units in beginning inventory.

 

Required:

a. Prepare an income statement for last year using absorption (full) costing.

 

b. Calculate the total value of the ending inventory using absorption (full) costing.

 

c. Prepare an income statement for last year using variable costing (i.e., contribution margin income statement).

 

d. Calculate the total value of the ending inventory using variable costing.

Answer:  

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