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# Calculation of Ending Finished Goods Inventory

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Answer questions on Comparison of Variable Costing and Absorption Costing attached. Please show work.

Youngstown Manufacturing and Chan Manufacturing Company.

https://brainmass.com/economics/production/calculation-ending-finished-goods-inventory-227695

#### Solution Preview

Q1.
Calculation of Ending finished goods inventory under Absorption costing
1) Step 1 : We will calculate the Manufacturing costs for the total unit production of 1600 units

Cost of Goods Sold= Direct Labor + Direct Materials used + Variable manufacturing overhead+Fixed Manufacturing Overhead
=4200+3500+300+2200
\$10,200.00

2) Step 2 : Calculate the Ending finished goods inventory
Cost of 1600 units =\$8000 (As calculated in Step 1)
Cost per unit= 10200/1600=\$6.38 per unit

Cost of ending inventory of 200 ...

#### Solution Summary

Response provides the steps of calculation of ending finished goods inventory under absorption costing.

\$2.19