Acc561 Introduction to Management Accounting: 13-B3 Consider the (Youngstown Manufacturing)

Acc561 Introduction to Management Accounting 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 Units produced = 1,600 Direct labor = $4,200 Direct materials used = 3,500 Fixed manufacturing overhead = 2,200 Variable manufacturing overhead = 300 Selling and administrative expenses (all fixed) = 700 Beginning inventories = 0 Contribution margin = 5,600 Direct-material inventory, end = 800 There are no work-in-process inventories. 1. What is the ending finished-goods inventory cost under absorption costing? 2. What is the ending finished-goods inventory cost under variable costing?
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