ACCT346 Managerial Accounting: Week 4 Assignment - MountainAir Company
ACCT346 Managerial Accounting Week 4 Assignment
Directions: Your assignment this week is to answer the question below which has four parts. Please show your work for full credit and use the boxes provided. Please add more rows or columns to the box if needed.
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: 1a. Prepare an income statement for last year using absorption costing. 1b. Calculate the value of the ending inventory using absorption costing. 1c. Prepare an income statement for last year using variable costing. 1d. Calculate the value of the ending inventory using variable costing.