The following data relate to Venture Company, a new corporation, during a period when the firm produced and sold 100,000 units and 90,000 units, respectively:
-Direct Materials Used $400,000
-Direct Labor $200,000
-Fixed Manufacturing Overhead $250,000
-Variable Manufacturing Overhead $120,000
-Fixed Selling and Administrative Expenses $300,000
-Variable Selling and Administrative Expenses $45,000
The company met its original planned production target of 100,000 units. There were no variances during the period, and the firm's selling price is $15 per unit.
A. What is the cost of Venture's end-of-period finished-goods inventory under the variable-costing method?
B. Calculate the company's variable-costing net income.
C. Calculate the company's absorption-costing net income.
This solution helps go through accounting concepts such as the variable costing method.