130) Ginsberg Limited has provided the following information for the year ended April 30, 20X1.

Units sold4,200 units

Units produced5,600 units

Direct labour$49,800

Direct materials used$77,500

Fixed manufacturing overhead$26,320

Variable manufacturing overhead$35,100

Selling and administrative expenses (all fixed)$32,400

Beginning inventoriesnone

Contribution margin$35,600

Direct-materials inventory, 6/30$  9,960

WIP, 6/30none


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

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

131) Johnson Corp. prepared the following absorption-costing income statement for the year ended May 31, 20X1.

Sales, 16,000 units$640,000

Cost of goods sold432,000

Gross margin$208,000

Selling and administrative expenses92,000

Operating income$116,000

Additional information follows:

Selling and administrative expenses include $3 of variable cost per unit sold. There was no beginning inventory, and 17,500 units were produced. Variable manufacturing costs were $22 per unit. Actual fixed costs were equal to budgeted fixed costs.

Required: Prepare a variable costing income statement for the same period.

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