128) The following information was taken from the records of the Greiner Company for the year ended December 31, 20X3. There were no beginning or ending inventories.

Sales$270,000

Selling expenses:

Fixed10,800

Variable27,400

Direct labour39,000

Factory overhead:

Fixed29,600

Variable25,800

Administrative expenses:

Fixed44,600

Variable72,200

Direct materials34,400

Prepare an income statement for the year ended December 31, 20X3 for the Greiner Company using both the absorption approach and the contribution approach.

129) Units produced17,000 units

Units sold15,600 units

Direct labour$27,350

Direct materials used$63,200

Fixed selling and administrative expenses$25,500

Variable selling and administrative expenses$29,000

Fixed manufacturing overhead$31,450

Variable manufacturing overhead$36,950

Beginning inventoriesnone

Gross margin$85,600

Direct-materials inventory, December 31 $   6,400

WIP, December 31none

Required:

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

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



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