Purchase Solution

Absorption costing / variable costing

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

The solution explains how to determine the amount of ending inventory under absorption costing and variable costing

Solution Preview

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

Total cost of production is
Direct labor $4,200
Direct materials used 3,500
Fixed manufacturing overhead 2,200
Variable manufacturing overhead ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Introduction to Finance

This quiz test introductory finance topics.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • Absorption costing format vs variable-costing format

    294797 Absorption costing format vs variable-costing format What are three ways that an absorption costing format differs from a variable-costing format and why is it important?

  • Variable and absorption costing

    The difference between variable costing and absorption costing is that the fixed manufacturing expenses are expensed in the period in variable costing and are taken into inventory in absorption costing.

  • Analyzing the difference between Variable Costing vs. Absorption Costing

    556599 Difference Between Variable Costing vs. Absorption Costing Please help analyzing the difference between Variable Costing vs. Absorption Costing! How each is used and who uses? Give examples of each.

  • Absorbtion Costing vs. Variable Costing

    - How much of the firms fixed costs stayed in inventory under variable costing? under absorption costing? - Calculate the unit cost using variable costing. using absorption costing.

  • Absorption and variable costing

    This explains the Absorption and variable costing by practical example

  • Absorption costing and variable costing

    203864 Explain the difference between absorption costing and variable costing Explain the difference between absorption costing and variable costing?

  • Variable and Full Costing Income:Comprehensive Problem

    (3) Please note that variable selling cost should be included in total variable cost in the statement of income as per variable costing. 6 Reconciliation of Variable and Absorption costing: Variable costing Net income Add: Fixed over head cost

  • Variable costing and absorption costing

    Comparison of Absorption and Variable Costing. When comparing absorption costing and variable costing income statements, a number of points should be noted: 1. Deferral of fixed manufacturing costs under absorption costing.

  • Variable and Absorption Cost Comparison

    Costing Samples: Variable and absorption costing are two cost methods.

  • Variable and absorption costing comparison

    Comparison of Absorption and Variable Costing. When comparing absorption costing and variable costing income statements, a number of points should be noted: 1. Deferral of fixed manufacturing costs under absorption costing.

View More Related Solutions