J&G Enterprises the following information related to the current years operations
Units produced 75,000
Standard production volume (units) 75,000
Units sold 50,000
Selling price per unit $95.00
Units in beginning inventory 0
Direct materials used $450,000
Direct labor $1,125,000
Selling and administrative expenses:
6. Assuming that J&G uses absorption costing, what is the ending finished goods inventory?
7. Assuming now that J&G uses direct (variable) costing, what is the operating income?
6. In absorption costing all manufacturing costs are a part of inventory. Total manufacturing cost is 450,000+1,125,000+900,000+750,000= 3,225,000
Cost per ...
The solution explains how to calculate the ending finished goods inventory and operating income